Reliance - Greed or Fear?


Well-Known Member
Market sentiment is quite ugly - to say the least. And in this ugly sentiment, nothing seems to matter. All news is bad news! Reliance is sending out lot of positive signals - and all are being ignored.

The arbitration victory in London is critical to resolving the dispute with the government, and the momentum on this case has decisively swung in favor of Reliance.

Reliance is now purchasing over 20% of its crude from Russia, at very significant discounts. And for the balance 80%, it is leveraging arbitrage crude, to optimize its pricing. GRMs of Singapore are estimated at $25 - and Reliance usually beats Singapore. And with discounted Russian crude, Reliance figures could cross an unprecedented $30 per barrel this quarter! Money that will drop straight to bottom line.

In terms of Gas, Reliance prices are even higher than ONGC’s - because of harder to extract fields operated by Reliance. And these prices are expected to go up even higher from October.

As for other segments, RRetail managed to take over the prime locations of Future, without paying for the acquisition! And it’s going ballistic in terms of signing up brands. Even the pace of online growth of Reliance is searing hot. Almost all the women’s lingerie brands now are under Reliance. Same for many prominent women’s clothing brands. Almost entire gamut of high street retail in India is under Reliance umbrella.

As for Telecom, the IPL win of digital streaming rights is a big booster. Reliance actually paid less than TV rights - at a time when many people are switching away from TV to app streaming. JioPhone base plan costs have been hiked after introductory offer ended. Low cost and unproductive SIMs have been pruned, and Reliance Jio is now poised for strong growth.

The new energy initiatives are also picking up rapidly.

The icing on the cake will be forthcoming IPOs of Jio and RRetail.

Current market sentiment could be a great time to pick up Reliance.

Similar threads