Reliance Ind: CMP: 1994:
Founded in 1973 enjoying the highest revenue and highest profit making in India. The only company to cross 35000 Cr Net profit per annum, and We may see Reliance crossing 50000 cr profits in next 2-3 Years, Reliance beyond doubt A Great journey.
Largest & Most Complex Single Site Refinery, The Largest Digital Services provider in India & A Diversified Product Portfolio of Groceries, Fashion & LifeStyle, Consumer Electronics & Connectivity across 12201 Stores across 3 Cr Sq foot. Today India’s largest Exporter, Largest GST payer and Largest Corporate Taxpayer in the Country.
9M sales have fallen by -30% (Covid Effect) and Net Profit has grown by 16% (Exceptional gain included). EPS growth of just 4.4% due to increase in Equity. Net Debt of around 1.6 lakh Cr was the major issue & was costing margins & Oil business not participating in Growth. Significant capital has been raised during this lockdown period of around 2.1 lakh Cr. 53k Cr by Right issue, 1.5 Lakh Cr in Jio Platform while 7600 Cr from BP. Investment cycle completed - Capex intensity reducing. Ready to Launch 5G.
De-growth in Retail by -13% due to lockdown, Digital Service up 34% while the huge -ve impact was in O2C. Capital raise of 2.6 Lakh Cr during this 9 Months helped decrease gross debt by around 1 Lakh Cr.
JIO did 68000 Cr revenue in 9M V/S 70000 Cr Revenue whole last full year. Shows growth of 34%. Profit grew by 50%. Making profits of around 3500 Cr/Quarter. Jio Platforms valued at ₹ 5 lakh crore equity value. Gross addition of 2.5 Cr Subscribers/quarter. The largest base of 41 Cr Subscribers. Lockdown helped Data Traffic was Up 30%. Usage of 5 Hour/User with more than 70% usage of Video. Strong ARU of 151 Rs/Month. Jio to have the Strategic Partnership with Facebook and FB has invested for a 9.99% stake. The investment cycle for Jio is now complete with mobility coverage nearing 99% of population Jio’s mission is to connect everyone and everything, everywhere – always at the highest quality and the most affordable price. Invested ~Rs3.5 Lakh crore to create pan India digital infrastructure with the largest fiber footprint. Today more than 25% EBITDA of Reliance is RelJio. Launched the JioMeet pro for online meetings. Accelerating roll-out of Jio Mart New Commerce. Raised around 1.5 Lakh Cr in JioPlatform.
Reliance Retail: Operating Environment challenging due to Covid. Overall Footfalls at 75% of pre-Covid levels. Smaller cities and Towns recovering faster. Fashion & Lifestyle leads the way surpassing pre-covid levels while Groceries and Electronics n Growth track. Sales have fallen by 13% affected by Covid but profits has grown by 4%. Store count crosses 12000+ mark. With Sales of just 3500 Cr in 2009, 17000 Cr in 2015 today reliance Retail has reached around 1.7 Lakh Cr sales shows 56% CAGR growth in sales and reached among few elite Indian companies with more than 1.5 Lakh Cr sales like TCS and HDFC Bank. 10X just in the last 5 Years. Connectivity, Consumer Electronics, and Grocery lead to 82% revenue in stores. Today they are in World Top 56th retailers & Should be in World in Top 20 in the next 5 years.
Retail was just 1.7% during 2015 while today Retail & Digital is 34% Reliance. Huge Consolidated Success. Strong growth in consumer business earnings offset weakness in energy businesses. Consumer businesses contribution at 40% (vs. 23.8%) since Q to Q & soon we would see them contributing around 50%. Several changes for O2C business is just announce to books O2C also.
Reliance has invested 5.4 Lakh Cr during the past several years to deepen the roots & now they would be a Net debt-free company from the investments done by RightIssue, FB, BP, & Several Investors. As reliance would get Debt-free we would expect Higher dividends and Bonuses in the coming time.
So we can see RIL is improving from broadly with different segments. Our target should be 5000 till 2030. New buying again can be done near 1700 & short term target could be 2700 & We may see the multi-year rally here. ROI could be 50-75%/Annum in a decade. Yes, we can Invest around 5% of this wealth creator company.
