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Reliance Capital Ltd Stock Analysis

Small Cap
Evaluated by 4390 users | BSE: 500111 | NSE: RELCAPITAL |
Finance - NBFC
Reliance Capital is part of the Reliance Group and is one of India's leading and amongst most valuable financial services companies in the private sector. Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Reliance Capital Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Operating Income (Rs. Cr.)1,8483,2753,8383,1823,9704,1081,9542,5832,3121,389286
Y-o-Y Gr. Rt.-77.2%17.2%-17.1%24.8%3.5%-52.4%32.2%-10.5%-39.9%-
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
9.3521.1827.0216.8330.0438.7716.63-228.576.23-216.87-432.00
Y-o-Y Gr. Rt.-126.5%27.6%-37.7%78.5%29.1%-57.1%-1474.4%NA-3581.1%-
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
286.82447.06464.73473.58493.97522.54539.6365351.59133.45-313.93
Y-o-Y Gr. Rt.-55.9%4%1.9%4.3%5.8%3.3%-32.4%-3.7%-62%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)0.971.822.071.162.082.681.19-17.410.51-20.83-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Reliance Capital Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income-3.1%-18.9%-10.8%-39.9%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-241.8%-248.5%-335.4%-3581.1%
Book Value per Share
-8.2%-23%-37.2%-62%
Share Price -28.2% -48.1% -59.4% 162.5%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)00001.621.680000-
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)17.8200023.8724.810000-
Margins
Net Profit Margin (%) 12.3915.8517.2512.8519.0723.7821.44-2236.79-393.45-3,817.16
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 3.295.775.933.576.327.633.13-50.541.74-89.42137.61
Loading price chart...
Entity Percentage Holding
Promoters 1.51%
Institutions 3.53%
Non-Institutions 94.96%
Pledged *96.9396.5096.3980.913.423.423.423.423.423.42
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that Reliance Capital Ltd is a below average quality company.

Reliance Capital Ltd's earnings have declined by -248.5%, whereas share price has declined -48.1% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Reliance Capital Ltd share price has declined -25.2% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that Reliance Capital Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Reliance Capital is part of the Reliance Group and is one of India's leading and amongst most valuable financial services companies in the private sector. Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.

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Reliance Capital is part of the Reliance Group and is one of India's leading and amongst most valuable financial services companies in the private sector. Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.

RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India. In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.

Business of the company:

RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the areas of portfolio investment, lending against securities, custodial services, money market operations, project finance advisory services, and investment banking.

Presently it is engaged in businesses like asset management, mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in the financial services space. It has one of the largest distribution channels with 9,700 outlets across 4,300 cities and towns.

Reliance Mutual Fund (RMF) is India’s largest Mutual Fund, with Average Assets Under Management (AAUM) of Rs 1,01,259 crore (US$ 23 billion) for the quarter ended June 30, 2011.RMF offers a well-rounded portfolio of products that meet varying investor requirements. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors.RMF has over seven million investor folios and a wide distribution network with presence in over 265 branches across India. In addition it has offices in Dubai, Singapore, Mauritius and UK.

Reliance Life Insurance Company Limited (RLIC) is amongst the leading private sector life insurers with a private sector market share of over 5% in terms of new business premium. RLIC has a strong distribution network of 1,252 offices across India, with over 1, 77,000 agents at the end of June 30, 2011.RLIC offers wide range of innovative life insurance products, targeted at individuals and groups. It offers need based products that caters to three distinct segments namely protection, retirement and investment plans. RLIC is committed to emerge as a leading Life Insurer with global scale and standards.

Reliance Commercial Finance aims to enable people fulfill all their ambitions by creating assets for personal & business requirements. It offers an exhaustive suite of financial solutions – Mortgages Loans, Loans against property, Loans for Commercial Vehicles, Loans for Construction Equipment, SME Loans, Auto Loans, business loans, Loans against Securities and Infrastructure Financing Reliance Commercial Finance has a loan book size of Rs. 13,030 crore (US$ 2.9 billion), with a customer base of over 1, 05,000 customers, as on June 30, 2011, across the top 18 Indian metros. It prides itself in creating customized financial solutions for its partners and customers by offering great Turnaround Time.

Reliance Securities, the broking arm of Reliance Capital is the one of the India’s leading retail broking houses in India, providing customers with access to equities, equity options and commodities futures, wealth management, wealth management services, mutual funds, IPOs and investment banking. Reliance Securities has more than 6.5 lac retail broking accounts through its pan India presence with over 6,600 outlets.

Reliance Money -The third party distribution business of Reliance Capital, branded as ‘Reliance Money’ is a comprehensive financial services and solutions provider, providing customers with access to life and general Insurance products, money transfer, currency exchange, loans and gold coins.Reliance General Insurance (RGI) offers a range of products for the corporate and individual customers. RGI currently offers insurance products including Health, Home, Motor, Travel, Fire, Engineering, Marine, Liability and Aviation.

RGI is amongst the leading general insurance companies in India, with a private sector market share of 9.4%.

Other business of the company:

Reliance Spot Exchange (RSX) is a new initiative of Reliance Capital in the exchange space by setting up modern exchanges, in various segments.RSX aims to bring different markets together on a national electronic platform thereby creating transparency, efficiency and infrastructure for spot markets across India.

Quant Capital focuses on the wholesale client segment of the capital markets which includes foreign and domestic institutions, corporations and ultra high net worth individuals. Quant Capital has built and implemented state of the art trading, risk and operational platforms. The firm employs over 200 professionals with diverse skills sets and has expanded its research and quantitative teams to ensure complete sector coverage across Indian equities.

Reliance Equity Advisors, wholly owned by Reliance Capital Limited is the Investment Manager of the Reliance Alternative Investments Fund – Private Equity Scheme I (a private equity fund). The objective of the fund is to raise third party funds and make portfolio investments.

The fund was launched with the aim of making investments into sunrise industries in India, offering an opportunity to participate in the growth of one of the world's fastest growing economies. Reliance Equity Advisors will focus on a range of investment opportunities across growth and consolidation capital, minority investment, buy-in / buy-out and acquisition financing in India.

Reliance Equity Advisors has a team of over 10 professionals with substantial Private Equity and M&A experience, and has evaluated several investment themes before selecting the approach it believes will generate the highest upside in a fast growing economy.

Reliance Asset Reconstruction Company (RARC), is a premier asset reconstruction company, the principal sponsor / shareholder of which is the Reliance Group (through Reliance Capital Limited). The other sponsors / shareholders are Corporation Bank, Indian Bank, GIC of India, Dacecroft and Blue Ridge.RARC is s in the business of acquisition, management and resolution of distressed debt/assets, formally commenced business operations in 2009.RARC has an asset base of over Rs 164 crore (US$ 37 million)

Reliance Venture Asset Management, wholly owned subsidiary of Reliance Capital, is the venture capital arm of the Reliance Group with an investment mandate to incubate or invest into high-growth, new business ideas and is stage, sector and geography agnostic.

Ranked 30th in the reputed list of US-based, Red Herring Top 100 Global Venture Capital firms in 2009 out of 1,800 global VC firms, from 32 countries, and across 12 benchmarks, Reliance Venture is the only Indian Corporate Venture Capital firm to feature in the ranking.

International Business:

Reliance Capital Limited intends to be a well-respected global player in the international financial services sector. It is present in Singapore, Malaysia, United Kingdom and United Arab Emirates.

Singapore

Reliance Asset Management (Singapore) Pte. Ltd. (RAMS) is a private limited company with limited liability and is regulated by the Monetary Authority of Singapore (MAS). RAMS holds a Capital Markets Services (CMS) license issued by MAS, for carrying out fund management activities under the Securities and Futures Act (SFA). It was set up as an offshore fund platform of Reliance Capital Asset Management Limited in 2006 for managing/advising mandates from global institutional and accredited investors. The core activity of RAMS is asset management focusing on India equities, alternative & fixed income instruments. RAMS has in-house capabilities to structure and manage customized mandates and new product offerings to meet specific client requirements. RAMS is also a registered Foreign Institutional Investors (FII) with Securities & Exchange Board of India.

Malaysia

Reliance Asset Management Malaysia Sdn Bhd (RAMMy) has been incorporated to undertake Islamic Asset Management under the license of The Securities Commission of Malaysia. RAMMy aims to become the provider of choice within Islamic Asset Management by launching unique Shariah-compliant investment strategies to complement investor’s portfolios with the ultimate focus on wealth creation.

United Kingdom and United Arab Emirates

Reliance Capital Asset Management (UK) Plc is a Financial Services Authority (FSA) authorized investment advisory business based in United KingdomReliance Capital Asset Management (UK) plc also established a branch in Dubai International Financial Centre in 2009. It has commenced operations after receiving a license from Dubai Financial Service Authority. The DIFC based entity provides a full range of Wealth and Investment Advisory Services to professional investors and institutional clients in the region. By establishing this branch RCAM (UK) plc intends to expand its operations throughout the UK, GCC and Africa.

Achievements:

  • Reliance Mutual Fund was awarded “Fund House of the Year” in equity category by ICRA Online.
  • Reliance Capital Asset Management received “Social & Corporate Governance Award 2007” by Bombay Stock Exchange and Nasscom.
  • Reliance Money was ranked no.1 broking house by Starcom – one of the largest media communication agencies in the world.
  • 2010 --Reliance Money launched new gold coins with India Post logo
  • 2011 - Reliance Commercial Finance launches loan against Gold Units. Reliance launched Gold Savings Fund
  • 2012 - Reliance Capital arm launched daily gold accumulation plan'


Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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