Reliance: The next decade

protrade

Well-Known Member
#1
The years from 2010 to 2020 were about Reliance diversifying away from oil, and creating two mega businesses - in telecom and retail.

Now we have a machine that is at zero debt, and primed to generate cash at greater than ever before levels.

For a company with the mantra “Growth is Life”, clearly they will not be sitting idle. And the level of execution capacity they have built up will be totally wasted if they sit idle. That is out of the question.

So which areas will Reliance focus on, as the growth triggers for the next 10 years?

One answer is immediately obvious: Life Sciences. They have already made huge investments in this space, and have good traction - plus Corona environment means that this space is clearly very important focus area for Reliance.

I also believe Financial Services would be a natural extension of their entry into Consumer facing businesses. They have a joint venture with SBI for Payments Bank, which hasn’t done much so far, but will be focus area of future.

Entertainment is another space. They already own a lot of media and content players - but I think this space has just scratched the surface in India.

Agriculture, with recent farm reforms, could fit in nicely with their supply chain in Reliance Retail.

Reliance has already shown intent in these spaces, and each of these spaces is big enough to justify the insatiable appetite of Reliance!

The next 10 years will surely be exciting for shareholders of the company.
 
#2
The years from 2010 to 2020 were about Reliance diversifying away from oil, and creating two mega businesses - in telecom and retail.

Now we have a machine that is at zero debt, and primed to generate cash at greater than ever before levels.

For a company with the mantra “Growth is Life”, clearly they will not be sitting idle. And the level of execution capacity they have built up will be totally wasted if they sit idle. That is out of the question.

So which areas will Reliance focus on, as the growth triggers for the next 10 years?

One answer is immediately obvious: Life Sciences. They have already made huge investments in this space, and have good traction - plus Corona environment means that this space is clearly very important focus area for Reliance.

I also believe Financial Services would be a natural extension of their entry into Consumer facing businesses. They have a joint venture with SBI for Payments Bank, which hasn’t done much so far, but will be focus area of future.

Entertainment is another space. They already own a lot of media and content players - but I think this space has just scratched the surface in India.

Agriculture, with recent farm reforms, could fit in nicely with their supply chain in Reliance Retail.

Reliance has already shown intent in these spaces, and each of these spaces is big enough to justify the insatiable appetite of Reliance!

The next 10 years will surely be exciting for shareholders of the company.
The question here should be will reliance be able to withstand competition from private global players and generate income at the same time. The business until now was a different game with competition from psu firms. It's a completely different ball game now.
 

protrade

Well-Known Member
#3
The question here should be will reliance be able to withstand competition from private global players and generate income at the same time. The business until now was a different game with competition from psu firms. It's a completely different ball game now.
Reliance is not the typical Indian company - which might be daunted by the spending power of foreign players. Amazon and Walmart are big, no doubt, but Reliance has the financial muscle and the execution muscle to compete with them aggressively.

I would actually think Reliance is positioned far better in India than it ever was in the past. They have managed to create significant share for themselves in multiple critical industries, with a leadership role.

Reliance could easily become the AliBaba + TenCent of India.
 

protrade

Well-Known Member
#4
The sort of advantage Reliance has, being cash-rich at a time when others are struggling, is not something small.

This is a company that is today generating 3% of India’s GDP. And in 5 years time, that figure will hit 5%.

It will be largely inorganic growth from here on, because they have the cash, and valuable companies are available cheap.
 

Vmaster369

Active Member
#5
i recall words
Dhiru bhai reliance kitne main liya R.s 1 main tum ne Reliance kitne main liya 1600 - 2400 God only save you ^^

yeah may be reliance if they improve in 5 G and stops giving throlled speed may be then profit will rise.
BUT again there dream of becoming monopoly 5G telecome provider is shattered as VI has survived
voda-idea ddin;t die completely lol and is back
may be 1 day it will become R.s 10000 :xD in next 10 20 years who knows ..

now if we talk todays price then at R.s 1200 to 1400 should be true price and good buy range And also is Intrinsic value 1360
https://www.moneycontrol.com/news/b...han-doubles-over-intrinsic-value-5581991.html

So won;t call Reliance a Great company as investor i call it as POOR company there are lot of new company available cheap where money be made more
 
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protrade

Well-Known Member
#6
Reliance Jio ARPU is around ₹143-145 now. And is expected to rise to ₹200 in a year time, as the company’s media/content bundling strategy, and First Day First Show start kicking in. Even if they don’t hike telecom prices.

Vodafone Idea survival isn’t a problem for either Reliance or AirTel. This is a big enough market for 3 or even more players. And think about it - the benefit of duopoly is only available if prices can be jacked up - today Reliance is the one keeping prices low now - both AirTel and Vodafone would be happy to raise rates if Jio lets them!
 

protrade

Well-Known Member
#7
Consider the advantages Reliance has, when it decides to enter any new business.

Today’s ET has an article - that Jio Payments Bank seeks to move current accounts of all Reliance Entities from regular banking system to itself!

https://www.google.co.in/amp/s/m.ec...cos-current-a/cs/amp_articleshow/79377256.cms

The magnitude of such a change, when 3% of India’s GDP moves away from regular banking system to Jio Payments Bank, is unimaginable!

This is the sort of advantage Reliance has today. They can enter the banking space and give their fledging bank a massive boost by just shifting their own business! And imagine if they shift salary accounts of their employees as well to Jio Payments Bank! We are now talking serious scale, literally overnight. And this doesn’t even exist in the radar, as far as Reliance share price is concerned!!

The same thing with marketing and advertising - they own the most successful IPL franchise - so getting prime position on player’s jerseys is easy!

With entertainment - as India shifts to digital delivery, Reliance owns the pipes that are critical for this digital delivery. One-third of India already uses Reliance for data - so selling media and content to this audience is no-brainer.

When Reliance hit 2200, I was concerned - but around 1900, it’s quite a valuable long term buy.
 
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