Joined: 07/Feb/2007
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Posted: 27/Aug/2008 at 12:55pm
I believe no new retail outlets, no expansion whatso ever. Infact reliable sources mentioning that they are trying to cut down the sales to reduce the impact of losses.
Hence we are observing lot of scarcing everywhere.
Joined: 22/Oct/2007
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Posted: 27/Aug/2008 at 1:12pm
They were doing so much Advertisement for last 4-5 years. I am always wonder that on one side they are shouting for losses and other side they are advertise their products with costly Brand Ambassadors. Never see the companies that want to increase their losses by selling more when they bound to make losses.
But with surging crude price & cap on retail prices (Only due to elections are at the corners otherwise these companies can easily convince GOI to raise fuel prices again) first time they are in mood of discourage sales of their products.
Joined: 01/Jan/2006
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Posted: 27/Aug/2008 at 1:50pm
Too little too late! Better to avoid anything which involves the Govt.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
Joined: 07/Feb/2007
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Posted: 27/Aug/2008 at 2:28pm
Originally posted by paragdesai
They were doing so much advertisement for last 4-5 years. I am always wonder that on one side they are shouting for losses and other side they are advertise their products with costly Brand Ambassadors.
No one in the industry thought that such a situation will come.
Can anyone imagine, RIL closing their outlets. This is the first time that Reliance group taking a back seat. Chances of opening their outlets in the near future looks very bleak as they have already moved/given pink slips to all their employess of their Retail Outlet Venture.
During the initial days of their launch, everyone was busy calculating the no. of months of survival to PSUs as new outlets of RIL started coming next to PSUs outlets which were doing good sale.
See what happened??? Hope it does not happen in the same way to their Retail venture???
Joined: 31/Mar/2007
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Posted: 30/May/2009 at 4:09am
Do you guys think, deregulation in current form is better than present situation. With the deregulation, margins are fixed when crude prices are low. When crude prices are above threshold, they need to bear the lost. They won't have the opportunity to recover some of the losses when crude prices are low with deregulation. This threshold crude price becomes one more politically driven number. It is like moving the problem from one place to other place making it even more difficult in the long run.
Edited by kanagala - 30/May/2009 at 4:21am
While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior.
Joined: 01/Jan/2006
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Posted: 30/May/2009 at 10:53am
Fair argument. Also as investors we need to work out the maximum earnings that these companies could generate in the backdrop of full regulation and then put a pe of 12 to 15 times. I understand that post tax RoCE will be capped at 14pc so one can work out the best case scenario for these companies which comes to 2 times mkt cap. At the moment everyone ir speculation when to buy but I am yet to see a report that defines the opportunity in quantitative terms.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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