Current fall in Reliance is excellent buying opportunity. Market is overreacting to this entire transparency issue with GRMs. The reality is that Oil is becoming progressively insignificant in Reliance, and it stands to reason that the news flow in oil is not of much consequence to the stock.
Reliance has spun off its Oil-to-Chemical business as a separate entity, which clears the decks for another massive fund infusion. We can quibble on whether O2C will be valued at $60B or $75B - but the reality is that even at $60B, Sum of parts will make current stock price attractive.
And we have to remember, SOTP only considers RJio, RRetail and RO2C. It doesn’t give any value for the LifeSciences initiatives - which is a large and growing company on its own! It doesn’t include the growing Financial Services business of Reliance - which will shortly get a boost with just Reliance’s current accounts and salary accounts being shifted to it!
Reliance’s internal Finance team is already amongst the largest and most successful team in India - whether it comes to Treasury Operations, Investment Banking, etc. Reliance commodity and currency trading desks are massive - and entire market watches what they do for cues. With their foray into banking, Reliance can easily be amongst top 5 private banks in India, off the blocks!
Reliance has spun off its Oil-to-Chemical business as a separate entity, which clears the decks for another massive fund infusion. We can quibble on whether O2C will be valued at $60B or $75B - but the reality is that even at $60B, Sum of parts will make current stock price attractive.
And we have to remember, SOTP only considers RJio, RRetail and RO2C. It doesn’t give any value for the LifeSciences initiatives - which is a large and growing company on its own! It doesn’t include the growing Financial Services business of Reliance - which will shortly get a boost with just Reliance’s current accounts and salary accounts being shifted to it!
Reliance’s internal Finance team is already amongst the largest and most successful team in India - whether it comes to Treasury Operations, Investment Banking, etc. Reliance commodity and currency trading desks are massive - and entire market watches what they do for cues. With their foray into banking, Reliance can easily be amongst top 5 private banks in India, off the blocks!