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Posted: 07/Oct/2007 at 11:56pm
A little bit disappointed that RIL's rank is only 269. But our Mukesh bhai is atleast on the top of the pack.
I've noticed something interesting - there are 268 companies that are bigger than RIL - but their promoter holding is very low. Among the larger companies, it looks like RIL has one of the highest promoter holdings.
I wonder why the promoters of the other bigger companies diluted their holdings. And I wonder how Ambani has managed to hold on to his 51% of shares in the company.
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Posted: 07/Oct/2007 at 12:03pm
I think most of the companies above RIL are management run company like Viacom, Verizon, Comcast, etc so the promoter holding much does not come into picture.
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Posted: 07/Oct/2007 at 12:14pm
Vishal, the companies we are talking about are management run because their promoter holding is low. If their promoter holding was over 50%, it is rarity to let outsiders manage their company.
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Posted: 07/Oct/2007 at 12:34pm
What I didnt wrote in my last reply was that most of the big company started off with some family background have complete control but over the time they became so big and so large that it became necessary for them to dilute their stake in their businesses which eventually led them to be minority stake holder just like Microsoft or take Toyota for example.
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Posted: 09/Oct/2007 at 4:23pm
RIL's 5 year net profit CAGR is 30%. Most brokerages estimate 30% CAGR for the next 5 years. And today, RIL is trading at a trailing P/E of 30.
HDFC Bank finally has some competition?
RIL is probably the only cyclical/commodity oil stock trading at such high P/E. Biggies like Exxon Mobil/Conoco etc trade at ONGC P/E levels of 12 - 15.
Joined: 01/Jan/2006
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Posted: 09/Oct/2007 at 4:27pm
RIL is diversifying into Retail and SEZ that dilutes the cyclicality nature of the petro business. Also RIL manages the beurocracy well so even with import duty tinkering etc the cyclicality has always been to RIL's advantage.
HDFC Bank has a history that starts from somewhere around 1995. That is a stupendous achievement. They have tackled so many interest rate cycles.
Axis bank seems to be moving in that line. They have done it for 28 of the last 30 quarters and the only two auarters they did not do this was when they repriced their GSecs.
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