Reliance Capital is one of the leading and most valuable financial services companies in the country. The company’s businesses include mutual funds, commercial finance, asset management, and so on.Market Capitalisation
The market capitalisation of Reliance Capital Ltd. as on 13 August 2018 is Rs.10,780 crore.
Company's Wealth and Recent Performance
The key highlights of the company’s financial result for the full FY 2017-18 ended 31 March 2018 are as follows:
- The company recorded a 13% increase in the total income and stood at Rs.19,898 crore.
- The net profit was up by 21% and stood at Rs.1,309 crore. The company posted a double-digit growth in the profitability of the core businesses.
- Reliance Capital had a net worth of Rs.16,692 crore and total assets of Rs.82,209 crore as on March 31, 2017. At the end of FY 2018-19, the book value was at RS.657 per share.
- The total assets recorded an increase of 14% and stood at Rs.93,851 crore.
- The company’s proposed dividend was Rs.11 per share while the earnings per share were at Rs.51.8.
- The company had a net debt-equity ratio of 2.48 as on 31 March 2018.
- The Reliance Group raised Rs.1,400 crore via the listing of its UK-based gaming unit in June 2018.
- In March 2018, Reliance Capital appointed Anand Natarajan as a Chief Operating Officer (COO).
The key highlights of Reliance Capital’s business for FY 2017-18 are as follows:
- Reliance Nippon Life Asset Management (RNAM) recorded AUM (Asset Under Management) of Rs. 3,96,370 crore. It increased by 13%. The RNAM PBT witnessed an increase of 25% and stood at Rs.726 crore.
- The outstanding loan book of Reliance Commercial Finance was up 10% at Rs.13,674 crore.
- Reliance Home Finance (AUM) stood at Rs.16,379 crore, up 47% while the PBT (Profit Before Tax) was at Rs.272 crore, up 97%.
- Reliance General Insurance reported gross written premium at Rs.5,122 crore, up 28% while the PAT (Profit After Tax) increased by 27% and stood at Rs.165 crore.
- Reliance Capital won "Best Business Process Excellence Program" Award at the World Quality Congress in 2017.
Reliance Capital Ltd. Stock Trends in 2018
- The opening price of the Reliance Capital stock on 1 January 2018 was Rs.582 on NSE. The scrip fell towards the end of the month by over 80 points and was at Rs.500. The price of the stock continued to fall in March as well even though the company announced a strong Q3 that was up 50%. By the end of February, the scrip was at Rs.467. The stock fell further in March as well by over 50 points and ended the month at Rs.425. In April, the scrip decreased marginally towards the end of the month.
- The scrip continued its downfall even further in the month of May and was at around Rs.373 towards the end. It witnessed a marginally change in June and ended the month at Rs.390. In July, the price of the stock was stable throughout the month however, it picked up the pace towards the end. The opening price of the stock at the end of July was Rs.414.
Reliance Capital Ltd. Stock Trends in 2016 and 2017
- The opening price of the Reliance Capital stock on 1 January 2016 was Rs.437 on NSE. The scrip fell marginally by the end of the month and was at Rs.375. The stock price continued to fall in February as Reliance Capital board approved the merger of RCF with Reliance Gilts. The price of the stock by the end of February was Rs.325. In March, the scrip priced up the pace by around 40 points and ended the month at Rs.369. The stock price gained strength further in April and crossed the Rs.400 mark.
- In May and June, the scrip increased marginally. The opening price of the stock by the end of June was Rs.395. The scrip gained strength in July and increased by around 35 points. The stock price continued to perform in August and crossed the Rs.500 mark towards the end of the month. The price of the stock by the end of August was Rs.532.
- In September, the scrip increased further as Reliance Capital raised Rs.2,000 crore via private placement. The scrip reached Rs.570 towards the end of the month. The price of the stock decreased marginally in the month of October. In November, the scrip fell by nearly 100 points and was at Rs.431 by the end of the month. In December, the stock price changed marginally and was at Rs.427 by the end of the month.
- The opening price of the Reliance Capital stock on 2 January 2018 was Rs.437 on NSE. The scrip increased by around 20 points by the end of the month. In February, the stock picked up the pace and increased by around 80 points and was at Rs.527. The same stint continued in March as well and the scrip crossed the Rs.600 mark. In April, the price of the stock increased towards the end of the month and was at Rs.669.
- In the month of May, the stock price fell towards the end of the month by 112 points and was at Rs.555. The scrip gradually increased in June and ended the month at Rs.646. In July, the stock was stable for the large part of the month and increased towards the end and stood at Rs.719. The price of the stock in August continued to surge and was at Rs.781 by the end of the month.
- At the beginning of September, the scrip opened at Rs.815 however, it fell throughout the month and stood at Rs.605 by the end. In October, the stock price was stable and changed marginally. The scrip fell in November and stood at Rs.438 by the end of the month. In December, the price of the stock gained strength towards the end of the month and crossed Rs.500. The opening price of the Reliance Capital stock by the end of December 2017 was Rs.583.
Should you invest in Reliance Capital Ltd.?
- Reliance Capital reported a strong growth in FY 2017-18. The company’s businesses have also performed well.
- The price of the stock has been stable for the past couple of years and not witnessed any unusual fluctuations. Investing in Reliance Capital Ltd. could be good for a long-term investment purpose. However, it is strongly advised to conduct your own research before investing in the stock market as it is risky and uncertain in nature. You can also look at mutual funds as an alternate option for financial investments.
Reliance Capital Limited (RCL) is a part of the Reliance Group. It was incorporated in 1986 as Reliance Capital & Finance Trust Limited following which it was renamed to The name RCL on 5 January 1995. RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. It is present in the MSCI Global Small Cap Index. The company operates in mutual funds, , wealth management services, life, health and general insurance, commercial and home finance, stock broking, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services. Reliance Mutual Fund is amongst the top Mutual Funds in India with over six million investor folios.
Management of the Company
Mr. Anil Dhirubhai Ambani, Chairman - Reliance Group
Mr. Ambani is the chairman of Reliance Group which has a presence in all the top sectors including financial services, telecommunications, media and entertainment, national road highways, metro rail systems, education, and healthcare. He is a B.Sc graduate and has completed his MBA from Wharton School, University of Pennsylvania.
Mr. Anmol Ambani, Executive Director and Additional Director, on August 23, 2016.
Anmol was appointed as an Additional Director in August 2016. He completed his summer internship with Reliance Mutual Fund (RMF) and working with RMF Equity Research team. He completed his BSC in Management from Warwick Business School, UK.
Listings in NSE, BSE, and Indices
The stock of Reliance Capital Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Bombay Stock Exchange (BSE).
Sector: Infrastructure - Finance - Investment
The company forms a part of important indices like:
- Nifty 200
- Nifty 500
- S&P BSE 200
- S&P BSE 500
- S&P BSE Finance
- Nifty Full Midcap 100
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
Reliance Centre, 6th Floor, North Wing,
Off Western Express Highway,
Santa Cruz East,
Mumbai, Maharashtra - 400055, India
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
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