INTERESTING FACT:
FD Return rate : 5.5%
Tax rate: 30%
Post tax nominal return rate : 3.85%
Inflation rate : 6%
Real return rate: -2.15%.
This is the "guaranteed return" everyone in india is practically getting currently.
But In stock market everyone want to get 10 - 20 % on everyday
FD Return rate : 5.5%
Tax rate: 30%
Post tax nominal return rate : 3.85%
Inflation rate : 6%
Real return rate: -2.15%.
This is the "guaranteed return" everyone in india is practically getting currently.
But In stock market everyone want to get 10 - 20 % on everyday
𝗥𝗲𝗹𝗶𝗴𝗮𝗿𝗲 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀: 𝙍𝙚𝙜𝙖𝙞𝙣𝙞𝙣𝙜 𝙞𝙩𝙨 𝙡𝙤𝙨𝙩 𝙜𝙡𝙤𝙧𝙮
𝐓𝐏 𝟐𝟎𝟎/𝟐𝟓𝟎
🎯 Expecting 2 BIG Corporate Triggers in coming months
Religare Ent which was once considered to be Goldman Sachs of India in early 2008 and had spectacular debut on listing went through the worst times in last 7 years due to lousy promoters who turned notorious. However, since the company was professionally managed they managed to build top class franchisee. They sold their AMC business to Invesco which is doing great. As of now look at valuations:
𝘾𝙖𝙧𝙚 𝙃𝙚𝙖𝙡𝙩𝙝 (𝙛𝙤𝙧𝙢𝙚𝙧𝙡𝙮 𝙍𝙚𝙡𝙞𝙜𝙖𝙧𝙚 𝙝𝙚𝙖𝙡𝙩𝙝): 𝙍𝙀𝙇 𝙝𝙤𝙡𝙙𝙨 𝙖𝙗𝙤𝙫𝙚 71% 𝙞𝙣 𝙞𝙩. 𝙄𝙩’𝙨 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙩𝙞𝙥𝙥𝙚𝙙 𝙖𝙩 200/ 𝙨𝙝𝙖𝙧𝙚 𝙬𝙝𝙞𝙘𝙝 𝙢𝙚𝙖𝙣𝙨 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 10000 𝘾𝙧 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣. 𝙊𝙩𝙝𝙚𝙧 𝙢𝙖𝙟𝙤𝙧 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧𝙨 𝙞𝙣𝙘𝙡𝙪𝙙𝙚 𝙆𝙚𝙙𝙖𝙧𝙖, 𝘾𝙤𝙧𝙥 𝙗𝙖𝙣𝙠. 𝘾𝙤𝙢𝙥𝙖𝙣𝙮 𝙞𝙨 𝙜𝙧𝙤𝙬𝙞𝙣𝙜 𝙖𝙩 𝘾𝘼𝙂𝙍 50%+ 𝙖𝙣𝙙 𝙬𝙞𝙡𝙡 𝙘𝙡𝙤𝙨𝙚 𝙮𝙚𝙖𝙧 𝙬𝙞𝙩𝙝 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 2800-3000 𝙘𝙧 𝙬𝙧𝙞𝙩𝙩𝙚𝙣 𝙥𝙧𝙚𝙢𝙞𝙪𝙢
2 year forward basis valuation comes to 10k crores approx if you see valuation matrix of 2-2.5x of written premium. Professionally managed company under able leadership of Anuj Gulati(ex Icici Lombard) since inception.
Broking and distribution: we believe this business will soon be sold for close to 300 cr. A great franchisee with top line of above 200 cr but made losses due to top heavy management and excess over heads. Senior management has been a drag as a lot of performers left 3 years back to a leading wealth management firm. However, still has a lot of retail base and B2B business so good valuation on that basis.
Rfl(Religare finvest ltd): This has been a big drag due to which REL valuations are depressed. Was to be sold to TCG but did not pass RBI test or may be REL new management led by Bay Capital felt they can get better valuation. They have paid almost debt of 4000cr + to banks and expects debt restructuring to go through for remaining 5000cr + , if this happens then one can expect REL to see its old glory.
🎯🎯Another trigger is Religare could get FD ( 600 cr + Interest for 6-7 years) back from LVB which is now taken over by DBS as it was wrongfully adjusted against liability of ex promoters. Religare has water tight case
3rd trigger could be RFL going to Ugro Capital(promoters are ex Religare top management). In any event this is going to be big . Looking at above scenarios REL looks good for 150+ without RFL being sorted out in immediate future and above 250 if RFL issues can be sorted out anytime soon. Current investors and management led by Rashmi Saluja are working tirelessly to get the shine back on this diamond.
Personal diligence advised
𝐓𝐏 𝟐𝟎𝟎/𝟐𝟓𝟎
🎯 Expecting 2 BIG Corporate Triggers in coming months
Religare Ent which was once considered to be Goldman Sachs of India in early 2008 and had spectacular debut on listing went through the worst times in last 7 years due to lousy promoters who turned notorious. However, since the company was professionally managed they managed to build top class franchisee. They sold their AMC business to Invesco which is doing great. As of now look at valuations:
𝘾𝙖𝙧𝙚 𝙃𝙚𝙖𝙡𝙩𝙝 (𝙛𝙤𝙧𝙢𝙚𝙧𝙡𝙮 𝙍𝙚𝙡𝙞𝙜𝙖𝙧𝙚 𝙝𝙚𝙖𝙡𝙩𝙝): 𝙍𝙀𝙇 𝙝𝙤𝙡𝙙𝙨 𝙖𝙗𝙤𝙫𝙚 71% 𝙞𝙣 𝙞𝙩. 𝙄𝙩’𝙨 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙩𝙞𝙥𝙥𝙚𝙙 𝙖𝙩 200/ 𝙨𝙝𝙖𝙧𝙚 𝙬𝙝𝙞𝙘𝙝 𝙢𝙚𝙖𝙣𝙨 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 10000 𝘾𝙧 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣. 𝙊𝙩𝙝𝙚𝙧 𝙢𝙖𝙟𝙤𝙧 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧𝙨 𝙞𝙣𝙘𝙡𝙪𝙙𝙚 𝙆𝙚𝙙𝙖𝙧𝙖, 𝘾𝙤𝙧𝙥 𝙗𝙖𝙣𝙠. 𝘾𝙤𝙢𝙥𝙖𝙣𝙮 𝙞𝙨 𝙜𝙧𝙤𝙬𝙞𝙣𝙜 𝙖𝙩 𝘾𝘼𝙂𝙍 50%+ 𝙖𝙣𝙙 𝙬𝙞𝙡𝙡 𝙘𝙡𝙤𝙨𝙚 𝙮𝙚𝙖𝙧 𝙬𝙞𝙩𝙝 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 2800-3000 𝙘𝙧 𝙬𝙧𝙞𝙩𝙩𝙚𝙣 𝙥𝙧𝙚𝙢𝙞𝙪𝙢
2 year forward basis valuation comes to 10k crores approx if you see valuation matrix of 2-2.5x of written premium. Professionally managed company under able leadership of Anuj Gulati(ex Icici Lombard) since inception.
Broking and distribution: we believe this business will soon be sold for close to 300 cr. A great franchisee with top line of above 200 cr but made losses due to top heavy management and excess over heads. Senior management has been a drag as a lot of performers left 3 years back to a leading wealth management firm. However, still has a lot of retail base and B2B business so good valuation on that basis.
Rfl(Religare finvest ltd): This has been a big drag due to which REL valuations are depressed. Was to be sold to TCG but did not pass RBI test or may be REL new management led by Bay Capital felt they can get better valuation. They have paid almost debt of 4000cr + to banks and expects debt restructuring to go through for remaining 5000cr + , if this happens then one can expect REL to see its old glory.
🎯🎯Another trigger is Religare could get FD ( 600 cr + Interest for 6-7 years) back from LVB which is now taken over by DBS as it was wrongfully adjusted against liability of ex promoters. Religare has water tight case
3rd trigger could be RFL going to Ugro Capital(promoters are ex Religare top management). In any event this is going to be big . Looking at above scenarios REL looks good for 150+ without RFL being sorted out in immediate future and above 250 if RFL issues can be sorted out anytime soon. Current investors and management led by Rashmi Saluja are working tirelessly to get the shine back on this diamond.
Personal diligence advised