#Petrochemical to #Telecom and #Retail Major Reliance

Hello Friends in my last blog we had discussed about Mr. Dhirubhai Ambani. How they created value of Reliance over the years.

Today I’m going to discuss about Reliance Industries Ltd backed by Asia’s Richest Man Mr. Mukesh Ambani son of visionary man Dhirubhai Ambani.

Reliance Industries commonly known as RIL is an Indian Multinational Conglomerate. RIL has diversified their business portfolio over the years like currently it has presence in Retail, Telecom, Energy, Petrochemicals, Textiles, Natural Gas, Media & recently Company acquired a well-known Toy Brand “HEMLEYS”

Hemley’s-store-Ahmedabad

During 2002, after death of Dhirubhai Ambani due to family issues Mukesh and Anil got separated and they separate their businesses also. At that time Mukesh Ambani got Petroleum & Refining Business while Anil got Telecom, Power, Finance etc.

From the very first time in 2002 Mukesh Ambani founded Reliance Infocomm Ltd to enter into Indian Telecom Sector. Behind this business he was thinking that world is witnessing how Mobile Technology revolution could change the world. So he had deep interest in Telecom Sector. His slogan for the company was also impressive “KAR LO DUNIYA MUTTHI ME” in English it pronounce like “Take over the World” if I’m not wrong.

But due to business separation Mukesh Ambani couldn’t do that. But after 2009 it had again started investment to fulfil his dream had seen before. This time it had bigger plan and had thinking beyond future. He had started big investments in Retail Sector, Telecom Sector & Media Sector also.

In 15th August 2016 Reliance JIO was introduced to the world & JIO proved Mukesh Ambani’s Dream. JIO entered with the bang in the market with cheapest data plan ever in the world in 4G with 1 year full free service of calling and data. World had never witnessed before like today. In just 399 Indian Rupees plan it provides 1.5GB data on daily basis with highest 4G Connectivity and free calling without any talk time issue for 84 days in the country.

Reliance-Jio

Reliance JIO has completely transformed Indian Telecom Sector where before JIO other Telco’s Charge Rs 150 almost for 1GB Data for 3G only.

Let me tell you one thing that world’s cheapest 4G availability is also available in India only Thanks to Reliance JIO. If we compare in USD 1GB 4G available at just 0.26USD compared with UK available with 6.66USD and in United States of America with nearly around 13USD.

Same thing will happen when Reliance will enter in Retail Segment also. Currently Indian Retail segment is getting transformed. There are many players in the market local and foreign players also are there.

Reliance has also big plans to counter Amazon and Flipkart (owned by WALMART). Plans are likely to launch on this 15th of August according to me. Reliance has also confirmed that it is also entering into High-Speed Broadband and Cable TV also. It has also started to acquire small players also like GTPL, DEN networks.

Reliance-Retail

In Refining Business, Saudi Giant Saudi Aramco also has shown interest to grab a stake in Refining business and for that Saudi Prince Mohammad Bin Salman done a meeting with Mukesh Ambani. Reliance also had a Joint Venture with BP (known as British Petroleum) both entities will invest heavily in Indian Energy Sector.

Reliance’s Petrochemical and Refinery business is doing better right now and running at the top of the level. But we all know that in future crude is not the key to run the business and for growth also. Mukesh Ambani also stated at the time of launching of JIO that in next decade “DATA IS THE OIL OF THE COUNTRY”

Company has a strong Balance sheet and strong Management Indian people already know about that.

Let’s check Balance sheet it matters when investment point of view comes

below Table represents Nos in Crores

Sources Of Funds
Total Share Capital 6,339.00
Equity Share Capital 6,339.00
Share Application Money 0.00
Preference Share Capital 0.00
Reserves 398,983.00
Revaluation Reserves 0.00
Networth 405,322.00
Secured Loans 157,195.00
Unsecured Loans 0.00
Total Debt 157,195.00
Total Liabilities 562,517.00

Now look at the company’s last 3 Fiscal Years Results.

FY Revenue (in Cr) Profit (in Cr) EPS (in Rs)
2016-17 305382 29941 101.33
2017-18 391677 36021 60.94
2018-19 567135 39734 66.82

During 2016-17 Company announced a bonus share so stock divided 1:1 in 2017-18 you could see that difference in EPS. EPS is increasing continuously due to support of Retail & Telecom Businesses.

I will surely recommend a buy on this stock in long run it will definitely deliver handsome return to their shareholders. according to me in future company will also list every company separately which will create a huge value also.

Note: Please consult your Financial Advisor before taking any call

#SIP is the best way in equity market to avoid high risk

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