Long-term view on Reliance Group or ADAG

Reliance group was founded by Dhirubhai Ambani in 1966 as a polyester firm. Later, Group entered into financial services, petroleum refining, power sector. After the death of Dhirubhai Ambani on 6 July 2002, group was splits into two different companies, Reliance Group and Reliance industries. Anil Ambani got the responsibility of Reliance Infocomm, Reliance Energy, Reliance Capital and Reliance Infrastructure. Now, Reliance Group is among the top Private Groups in india with over 130,000 employed workers.

Reliance Infrastructure

Reliance Infrastructure is India’s largest private sector enterprise power utility and construction company. RInfra mostly works in Power Plants, Metro Rail, Airports, Bridges, Tall Road, Defence. It is a major share holder in another group company Reliance Power. Reliance Infra is constructing five airports in Maharashtra. Reliance Infrastructure is also bidding for projects in Nepal and Maldives for undertaking new projects. Mumbai Metro Phase I & II Projects are also in portfolio of Company.

Overall, Portfolio of Company looks attractive and good. Growth Numbers and Balance Sheet of Company also seems positive. Future of Infrastructure sector in India is looking great as the Construction is a necessity of every Developing Country. Therefore, one can hold this stock for long-term target of Rs.720

Reliance Capital

Reliance Capital is among the top private sector financial services company in India. Company mostly works and provide services in asset management and mutual fund, life insurance and general insurance, commercial finance and wealth management related activities. Major deals of Reliance capital includes sold out of 26% stake in its life insurance business – Reliance Life Insurance – to Nippon Life Insurance (Nissay), which was valued at Rs.3,062 crore in 2011. Reliance Capital in 2014 announced the merger of its global film and media services business with Prime Focus to create an entity with a combined turnover of over Rs 1,800 crore.

Portfolio of company is really interesting and attractive. Financial Numbers are looks goods posted by company and the presence of company in market is also great. As the importance and dependency on financial companies for taking loans and EMI, investment through mutual funds in market and insurance taking would increase, fundamentals of company would also get stronger. Therefore, I would recommend to buy or hold this stock with target of Rs.640 for long term.

Reliance Communication

Reliance Communication is an Indian Internet access and telecommunications company provides GSM (Voice, 2G, 3G, 4G) mobile services, fixed line broadband and voice services, DTH Services. RCom is the fourth largest telecom operator in India with a subscriber base of 98.70 million as of June 2016. Largest Optic Fiber Cable network within the country is laid by Reliance Infocomm in 2003 to 2005 which is 135,000 km.

Major Deals

On 14 January 2016, RCom announced that it had acquired Sistema Shyam TeleServices Limited (operate as MTS in india), in an all stock deal, in which SSTL received a 10% stake in RCom. As a result, Reliance Comm acquired all the subscribers and spectrum in the 850 MHz band of MTS India.

On 14 September 2016, Reliance Communication announced that they would merge their wireless business with Aircel which would result in Formation of third largest telecom operator in india with subscriber base of more than 100 million. RCom and Aircel will each hold 50% stake in the merged entity, with equal representation on the board of directors and all committees.

On 14 October 2016, Reliance Communication announced that it has signed a non-binding pact with Canada’s Brookfield Infrastructure Group to sell a majority stake in the company’s tower unit for Rs11,000 crore. Company will hold 49% stake in tower unit and the remaining 51% stake would transfer to Brookfield. RCom will continue as an anchor tenant on the tower assets, under a long-term MSA (master services agreement), for its integrated telecommunications business. Payment of Rs 11,000 crore then could be used to lower RCom’s net debt that stood around Rs 43,000 crore.

Its true that the competition from Rjio would negatively affect the overall earnings of telecom companies. But the good thing is that the Rcom is a Co-partner of Rjio for providing 4G services. All these deals held in 2016 would help them to bring down net debt from books and cover more areas and circles within the country. Thus, the future of Company is really great. Therefore, I would recommend to buy the stock with target of Rs.92.

Reliance Power

Reliance Power is a Private Power Generation, transmission and Distribution company promoted by Reliance Infra in india. Sasan UMPP along with the coal mine is the largest integrated coal-cum-power plant in the World, wholly owned by Reliance Power. Chitrangi Power Project with capacity of producing 3960MW in Madhya Pradesh is also owned by Rpower. In 2010, Reliance Natural Resources merged with Reliance Power just after its Initial Public Offering. Portfolio and Financial Numbers of Company looks attractive. Therefore, I would recommend to buy stock for long term with target of Rs.108.

Reliance Defence

Reliance Defence and Engineering Limited is the India’s largest shipbuilding and Heavy Industry company. It was renamed from Pipavav Defence to Reliance Defence in 2015 after acquiring more than 25% shares by Reliance Infra. On 12 September 2011, Company entered in a joint venture with Mazagon Dock Limited to collaborately build warships and submarines. Price of Stock looks really attractive for Buying as the company is actively participating in all Defence and shipyard related activities. Therefore, I would recommend to buy stock with target of Rs.82 for long term.

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