Reliance Capital Ltd. share price target

Recently, on April 26, 2019, rating company Icra downgraded short-term rating on two Anil Ambani-led entities Reliance Home Finance and Reliance Commercial Finance. Rating on Reliance Commercial Finance's commercial paper programme of | 1,200 crore, has been downgraded to junk grade of D from A4 with rating watch on negative implications. Reliance...

ICICI Securities Ltd | Retail Equity Research Reliance Capital reported a slightly muted performance with growth moderating across lending businesses and higher interest cost denting profit. Among major changes was opening net worth adjustment that was quite significant as per Q2 consolidated balance sheet reporting, as NW as on Q2FY19 from March 2018 had gone down by ~| 8000-9000 crore to | 6845 crore led by group exposure ECL provisions. Q3FY19 numbers came in below estimate with revenues at | 5016...

Earnings improvement on track, NW to be watched Reliance Capital reported an operationally stable performance with businesses being good; the pressure of related group accounts led to...

ICICI Securities Ltd | Retail Equity Research Reliance Capital reported slightly disappointing results as even with operational businesses being good, the pressure of related group accounts seems to have led to significantly higher ECL provisions (| 442 crore) and MTM on fair value of investments (| 216) crore in last Q1. Networth adjustment also appears to be on the higher side at ~| 5000-6000 crore at least from FY18 base of |16600 crore. Though networth erosion is there led by expected credit loss provisions on...

Reliance Capital reported a PAT of | 428 crore reporting growth of 2% YoY, 36% QoQ led by gain of | 100 crore from Sula Vineyards sale. Marginally slower growth was seen on the consolidated topline front with revenues declining 2% YoY to | 5008 crore on impact of AMC IPO and lower life NBP premiums. One-time capital gains continued from IPO in AMC in FY18 with PAT numbers growing 21% YoY to |...

Reliance Capital reported in line consolidated results on the topline front with revenues growing 19% to | 4722 crore in spite of treating AMC as associate from subsidiary. One-time capital gains continued from IPO in AMC resulting in PAT growth of 50% YoY to | 315 crore. Home finance and AMC recorded strong growth while the life insurance business continued moderate performance In Q3FY18, for AMC (listed), the topline, PBT grew 31%, 25% YoY to | 470 crore and | 130 crore, respectively. PAT grew 24% YoY to | 130...

ICICI Securities Ltd | Retail Equity Research Reliance Capital reported in line consolidated results on the topline front with revenues growing 7% to | 5254 crore in spite of treating AMC as an associate from the subsidiary. One-time capital gains from an earlier stake sale to Nippon Life in AMC resulted in PAT growth higher than estimate to | 352 crore AMC (listed) remained strong with reported strong revenue at | 436 crore while PBT grew 20% YoY to | 177 crore (Q1FY18- | 150 crore)....

ICICI Securities Ltd | Retail Equity Research Reliance Capital (RCap) has re-emerged on its growth path with concentrated focus on each business segment. Renewed management strategy is expected to improve RoEs in each business and contribute to improving consolidated profit. Stake sale via IPO, non core assets sale will enhance FY18 capital gains, networth and thereby enable debt reduction. Enhanced management focus, surge in earnings growth expected Healthy growth is seen in the AMC business with strong capital markets...

Consolidated PAT grew 15% YoY to |238 crore higher than our estimate of |207 crore, not comparable QoQ. Revenues also grew 33% YoY to |4857 crore better than expected AMC remained strong with revenue and PBT, grew 14% YoY to | 395 crore and | 150 crore, respectively and AUM at |362550 crore. The life insurance business remained weak as it continued weeding out unprofitable business whereby new business premium was flat YoY at | 183 crore and marginal growth was in renewal premium to |...

Operating Income rose by 63.64% to Rs. 630.0 Cr in Q4FY17 when compared to the previous quarter.

There were strong capital gains at | 433 crore wherein ~| 250 crore from Paytm stake sale led to a surge in Q4 PAT to | 416 crore, flat YoY and double QoQ. FY17 PAT was at | 1010 crore vs. | 1100 crore AMC remained strong with reported PBT of | 159 crore, up 21% YoY...

BUY Reliance Capital Ltd at CMP Rs. 532 and add on dips to Rs. 490 - 532 for the target of Rs. 622.

ICICI Securities Ltd | Retail Equity Research PAT came in at | 209 crore, a dip of 11% YoY and 17% QoQ vs. our estimate of | 246 crore. Q2FY17 had one-off capital gains booked of ~| 50-60 crore and higher provision in general insurance (GI) at | 74 crore. With these one-offs factored in, topline declined 19% QoQ to | 3963 crore. Not comparable YoY due to life insurance consolidation AMC reported a stable performance with PBT of | 151 crore, up 8% YoY, with total AUM growth at 28% YoY to | 335190 crore...

Reliance Capital reported flattish PAT at | 253 crore, up 1% YoY, in line with our estimate of | 257 crore, led by one-time provision to strengthen general insurance reserves at | 74 crore. Topline growth remained healthy at 109% YoY to | 4926 crore...

Reliance Capital reported flattish PAT at | 207 crore, up 3% YoY, below our estimate, led by higher opex at | 2629 crore (up 76% YoY). Topline growth remained healthy at 49% YoY to | 3663 crore, led by healthy growth in lending business and consolidation of life insurance. • AMC reported a PBT of | 122.2 crore; up 13% YoY, with AUM growth at 23.4% YoY to | 300180 crore.

Valuation: With lending business expected to grow at healthy pace, they have revised target price from | 481 to | 498 per share on a SoTP basis. They have built in a 15% holding company discount. With recent rally in stock price, downgrade their rating to HOLD.

Reliance Capital reported flattish PAT at | 415 crore, up 2% YoY, above our estimate, led by higher AMC fees and capital gains during the quarter from the stake sale in the life and AMC businesses...