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MANAGERS PVT. LTD. Follow : Email: [email protected] | www.satcowealth.com | +91-22 6170 6700 [email protected] +91 9137741473 +91 9820570103 Reliance Retail Limited (Best Proxy for the Consumption Story of India) Reliance Retail Limited is a wholly owned subsidiary of Reliance Industries Limited (RIL) through one of its subsidiary Reliance Retail Ventures Limited. It has started the retail revolution in India and is India’s largest modern trade retailer by reach, scale, revenue and profitability. It is ranked 94 th and is the 6 th fastest growing retail company in the world as per Deloitte’s Global Powers of Retailing 2019. Reliance Retail aims to be amongst top 20 retailers in the next 5 years. It has established presence across key consumption baskets and holds a leadership position in food, consumer electronics and fashion retailing . It has a mission to provide millions of customers with unlimited choice, outstanding value proposition, superior quality and unmatched experience across the full spectrum of products and services. Reliance Retail Limited achieves its robust growth due to its three core initiatives: 1. Integrating Value Chain Connecting Suppliers, small and large, to B2B and B2C customers through pan-India ecosystem. 2. Digitisation Connecting Physical and digital spaces, with endless kiosks and multiple payment modes with real-time analytical support. 3. Bridging Urban-Rural divide Bringing quality products at affordable prices to smaller tier cities, meeting demand gap and offering employment. Parameters Performance as on 31st March, 2019 Performance of Q2 ending 30 th Sept, 2020 Retail Store Network 10,415 10,901 Retail Space Coverage 22 million sqft 24.5 million sqft Addition of new Stores 8 Stores per day 4 Stores per day (approx.) Addition of new stores 2,829 337 Customers served 1 Lakh per hour - Television Set Sold 1 in every 24 seconds - Phones sold 1 in every 2 seconds - Groceries sold 6.4 lakh tonnes - Garments sold 4 lakh per day - With the acquisition of Hamleys, it has increased its presence in 18 countries and is the global leader in children premium toys category. In 2018-19, the company achieved a total revenue of ₹ 1,30,566 crore from ₹ 69,198 crore in 2017-18 which is an increase of 88.7% year on year. The Retail arm of reliance operates through stores and service concepts such as:
Transcript
Page 1: MANAGERS PVT. LTD. Reliance Retail Limited (Be st Proxy ...€¦ · Reliance Retail Limit ed is a who lly owned subsidiary of Reliance Industries Limited (RIL) through one of its

MANAGERS PVT. LTD.

Follow :Email: [email protected] | www.satcowealth.com | +91-22 6170 6700

[email protected]

+91 9137741473+91 9820570103

Reliance Retail Limited (Best Proxy for the Consumption

Story of India)

Reliance Retail Limited is a wholly owned subsidiary of Reliance Industries Limited (RIL)

through one of its subsidiary Reliance Retail Ventures Limited. It has started the retail revolution in

India and is India’s largest modern trade retailer by reach, scale, revenue and profitability. It is ranked 94th and is the 6th fastest growing retail company in the world as per Deloitte’s Global Powers of Retailing 2019. Reliance Retail aims to be amongst top 20 retailers in the next 5 years. It has established presence across key consumption baskets and holds a leadership position in food, consumer electronics and fashion retailing . It has a mission to provide millions of customers with unlimited choice, outstanding value proposition, superior quality and unmatched experience across the full spectrum of products and services.

Reliance Retail Limited achieves its robust growth due to its three core initiatives: 1. Integrating Value Chain – Connecting Suppliers, small and large, to B2B and B2C customers through pan-India

ecosystem. 2. Digitisation – Connecting Physical and digital spaces, with endless kiosks and multiple payment modes with

real-time analytical support. 3. Bridging Urban-Rural divide – Bringing quality products at affordable prices to smaller tier cities, meeting

demand gap and offering employment.

Parameters

Performance as on 31st March, 2019

Performance of Q2 ending 30th

Sept, 2020

Retail Store Network

10,415

10,901

Retail Space Coverage

22 million sqft

24.5 million sqft

Addition of new Stores

8 Stores per day

4

Stores per day

(approx.)

Addition of new stores

2,829

337

Customers served

1 Lakh per hour

-

Television Set Sold

1 in every 24 seconds

-

Phones sold

1 in every 2 seconds

-

Groceries sold

6.4 lakh tonnes

-

Garments sold

4 lakh per day

-

With the acquisition of Hamleys, it has increased its presence in 18 countries

and is the global leader

in children premium toys category.

In 2018-19, the company achieved

a total revenue of ₹

1,30,566 crore

from ₹

69,198 crore

in 2017-18 which is an increase of 88.7%

year on year.

The Retail arm of reliance operates through stores and service concepts such as:

Page 2: MANAGERS PVT. LTD. Reliance Retail Limited (Be st Proxy ...€¦ · Reliance Retail Limit ed is a who lly owned subsidiary of Reliance Industries Limited (RIL) through one of its

Follow :Email: [email protected] | www.satcowealth.com | +91-22 6170 6700

MANAGERS PVT. LTD.

Reliance Retail

Limited

also has exclusive partnerships with some of the most famous and iconic brands in India as well as globally

which include:

Key Highlights

Reliance Retail Ventures Limited

has a shareholding of 99.5%

in Reliance Retail limited.

India’s largest

and fastest growing retailer with 10,901

retail stores

across the across the country

as on Q2 ending 30th

Sept’19.

CRISIL

as on June, 2019 has rated

its long term instruments

of ₹

250 crore Proposed Fund-Based Bank limits

and₹

2,750

crore Fund Based Facilities

to CRISIL AAA

and has a stable outlook

on its instruments.

CRISIL

has also reaffirmed

its rating of CRISIL A1+

to its ₹

20,000 crore worth of commercial paper.

It is virtually a debt free company

with zero long term borrowings

as of FY2018.

The retail stores

have witnessed over 154

million footfalls

for Q2 ending 30th

Sept’19

which has

increased by 11.60%.

The Revenue

has seen a 7 fold increase

and the Profit

has witnessed a 14 fold increase

in the past 6 years.

The total revenue of Q2

of FY2019-20

is at ₹

41,202

crore

which has grown at 27% year on year.

The net profit

(PAT)

of Q2 of FY2019-20

stood at ₹

1,148 crore

which has increased by 55.80%

year on year.

The PBDIT

for Q2 of

FY2019-20

has grown at 66.81%

year on year to ₹

2,322

crore from ₹ 1,392

crore.

Growth Story in Graph

Financial Highlights

(in Crores)

Metrics

2016-17

2017-18

2018-19

Q2 ending 30th Sept'19

2019-20 Extrapolated

3 Year CAGR

Net Worth

6,819.57

9,066.46

12,587.41

12587.41**

16,363.63

35.86%

Total Assets

11,672.42

24,084.41

34,377.55

39,250.00

44,690.82

71.62%

Total Revenue

26,473.13

51,501.73

1,01,946.52

41,202.00

1,32,530.48

96.24%

PAT 442.60 1,243.14 3,138.26 1,148.00 4,079.74 166.28%

Basic EPS (in ₹ per share) 0.83 2.34 6.29 2.30 8.18 175.28%

Diluted EPS (in ₹ per share) 0.83 2.29 6.29 2.30 8.18 175.28%

*All figures have been taken as per annual report of Reliance Retail for the FY2017-18 and Reliance Industries Limited for the FY2018-19 and Q2 of FY2019-20. Growth rate for the FY2019-20 has been taken at 30%.**Net Worth kept same as on 31 st March’2019 as the data has not been released for the same in Q2 of FY2019-20.

-

2,000

4,000

6,000

8,000

10,000

12,000

Retail Stores

2,6213,245

10,90110,415

7,573

3,616

CAGR-33%

Page 3: MANAGERS PVT. LTD. Reliance Retail Limited (Be st Proxy ...€¦ · Reliance Retail Limit ed is a who lly owned subsidiary of Reliance Industries Limited (RIL) through one of its

Follow :Email: [email protected] | www.satcowealth.com | +91-22 6170 6700

MANAGERS PVT. LTD.

Disclaimer and Limitation of Liability

The report is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed

to others None can use the report as a base for any claim, demand or cause of action and, also none is responsible for any loss

incurred based upon. The investments discussed or recommended in this report may not be suitable for all investors. Opinion

expressed is the current opinion as of the date appearing on the material only.

Further, the information in the document has been printed on the basis of publicly available information, internal data and o

sources believed to be true and are for general guidance only but which may have not been verified independen tly. While every

effort is made to ensure the accuracy and completeness of information contained, the company takes no responsibility and

assumes no liability for any error/ omission or accuracy of the information. Recipients of this material should rely o n their own

judgments and conclusions from relevant sources before making any investment.

The investment advice should not be considered to be or taken as an offer to sell or a solicitation to buy/sell any security. Price

and value of the investments referred to in this material are subject to volatility. Past performance is not a guide for future

performance.

Valuation Highlights

ther

(in Crores)

Metrics 2017-18 2018-19 2019-20

Extrapolated

Market Capitalization - 3,34,299.18 -

Promoter Shareholding (%) 99.95% 99.95% 99.95%

Net Worth 9,066.46 12,587.41 16,363.63

Total Revenue 51,501.73 1,01,946.52 1,32,530.48

Earnings per share (in ₹ per share) 2.29 6.29 8.18

Return On Equity (ROE) (in %) 13.71% 24.93%

-

EBIT Margin (in %) 3.00% 4.20% -

PBT Margin (in %) 3.64% 4.73% -

PAT Margin (in %) 2.41% 3.08% -

Market Cap./Sales ratio - 3.28 -

Forward Market Cap./Sales ratio - - 2.52

Face Value per share (in ₹ per share) 10/- 10/- 10/-

*For calculation of forward Market Cap to Sales ratio, growth rate for the year 2019-20 has been taken at 30%.

Source: QUANTMAC


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