Financial Management Essay

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Executive summary Reliance Capital, a constituent of S&P CNX Nifty and MSCI India, is one of India's leading and amongst most valuable financial services companies in the private sector. It has a net worth of Rs. 7,963 crore and total assets of Rs. 30,096 crore as on September 30, 2010. It has interests in asset management and mutual fund; life and general insurance; commercial finance; stock broking; depository services; investment banking, private equity & proprietary investments; exchanges, asset reconstruction; distribution of financial products & other activities in financial services. | Concerns * Strong Competition in the NBFC space. * Another bout of Recession. * Liberalization of Indian the Indian financial sector may allow foreign players to enter thereby increasing competition. * Constant regulatory changes in the sector create hurdles for the company. Key Investment considerations * Largest NBFC in India * Well diversified business model * Tremendous growth seen over the period of 5 years * Expected New Banking Licence * Offers a number of products * Expected growth in mutual fund market in India * Expected IPO of Reliance Insurance Company Ltd. and other group companies. Investment Strategy Period | Cash | Derivative Strategy | Short Term | Buy | Buy Jan 11 Future @ 660 Rs. And sell 700 Jan 11 Call @ 13 Rs. | Mid Term | Start Accumulating | Same As Above | Long Term | Start Accumulating | Same As Above | Investment Summary: * Largest NBFC in India: Reliance Capital is the largest non banking finance company in India having more than 2 crore customers, 6500 offices in India, over 22000 employees and 5 lakh business partners. * Expected growth in mutual fund market in India: As compared to other developed nations, India’s overall participation in the Mutual

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