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Kalyan
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Quote Kalyan Replybullet Posted: 14/Jun/2007 at 1:36pm
George Soros holds more than 5% in Rel Cap
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Quote deveshkayal Replybullet Posted: 16/Jun/2007 at 11:45pm
Originally posted by nawendu

First thing I would like to understand how much they hold in Life Insurance. I am yet to get a clear picture.
Also, do they hold 100% in Reliance AMC.
 
Rel Cap holds 100% in all the business units...
 
UTI Sec projects Rel MF AUM for FY08 at Rs.74091 crs.(My guess is around 90,000 crs conservative fig.)
 
Currently banks are allowed to sell insurance policies of only one Insurance company.Rel Cap being a late entrant in this field does not have tie-up with any banks.
 
The company will employ part of its unrealised gains ie.1400 crs in consumer finance business.
 
For providing offshore investment platform to its customers it has tied up with CMC Capital partners of UK and Alron Global of US.
 
Consumer finance business in India stands at about 2-3% of GDP as compared to 25% in European market.
 
UTI Sec has a price target of 1366 based on FY09E.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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Quote tigershark Replybullet Posted: 16/Jun/2007 at 9:37am
it makes sense to remain invested in this co and not to pay much attention to the price trgts at least this time the price trgt is higher than the current mkt price.THE MKT FOR THIS CO IS HUGEAND CAN ONLY GET BIGGER WITH TIME.WITH AMC AND INSURANCE BEING THE KEY DRIVERS.
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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Quote smartcat Replybullet Posted: 17/Jun/2007 at 1:40pm
Does consumer finance business have a long gestation period like insurance business? Or does it start making profits from year one?
 
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Quote basant Replybullet Posted: 17/Jun/2007 at 1:55pm
I think this should be in the money right from the first day - the interest clock ticks faster then the taxi meter!
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Quote smartcat Replybullet Posted: 17/Jun/2007 at 2:19pm

We are now tracking three companies in this business - Future Capital, Reliance Capital and Indiabulls. So I guess it makes sense to investigate deeper into this business. What are the risk factors involved?

- Consumer finance loans are unsecured loans (unlike car or home loans). So if the company's risk profiling systems are not in place, there is a risk of NPAs piling up.
 
- Like banks, will these companies resort to equity dilution to raise funds for expansion? 
 
- What will happen to their business when interest rates go up? Or go down?
 
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Quote basant Replybullet Posted: 17/Jun/2007 at 2:35pm
Since tehy spread their bets so evenly across the chances of companies going bust are minimized. Now a person would default on his business loan first then on the two wheeler/home/consumer loan!!!
'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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Quote deveshkayal Replybullet Posted: 17/Jun/2007 at 11:14am
The Insider says that Rel Cap is placing around 5% of its shares at Rs.1200 with a private investor.Further,The Insider has learnt that the company has applied for a banking license. (ET Investors Guide)
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I dont think there is a need to raise money as they have sufficient cash...If at all,that would be through their units,Rel MF,Insurance,etc..not through Rel Cap..
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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