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RATING

RECOMMENDATION

Strong Buy

  • Reliance Retail Pre IPO Essentials

Discover and get complete analysis on Reliance Retail upcoming IPO unlisted shares - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and latest updates.

ISIN

INE742O01010

Face Value

₹10.00

Total Share

4990404513

Total Income

₹1,44,788.94 Cr

Profile After Tax

₹5,614.44 Cr

EPS

₹10.41

Book Value

₹15,429.00 Cr

Intrinsic Value

₹1,572.03

Sector

Consumer Discretionary

Sub-sector

Retail Department Stores

Category

Pre IPO

Cashflow - Operations

₹16,473.92 Cr

Cashflow - Financing

-₹11,708.86 Cr

Reliance Retail Growth

Compounded Sales Growth

  • 41.87%

    1 Year

  • 67.67%

    2 Year

  • 76.19%

    3 Year

Pro Only

Compounded Profit Growth

  • 79.50%

    1 Year

  • 112.52%

    2 Year

  • 133.22%

    3 Year

Pro Only

Return On Equity

  • 36.39%

    1 Year

  • 28.89%

    2 Year

  • 15.65%

    3 Year

Pro Only

About Reliance Retail

  • Reliance Retail is an Indian retail company, a subsidiary of Reliance Industries Limited.
  • Founded in 2006, it is the largest retailer in India in terms of revenue.
  • V Subramaniam is the CEO of the venture.
  • Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implement and inputs.
  • The company's outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods and consumer durables.
  • It had a total of 11,784 stores in April 2020 in India with an area of over 2.8 Crore square feet across more than 7,000 towns and cities, with yearly revenue of over INR 1.62 Crore

  • Reliance Retail Funding

Funded By Funding Amount Date of Investment Funding Round Fund Name
Silver Lake 93750000000.00 ₹ 09 Sep 2020 - -
KKR 55000000000.00 ₹ 23 Sep 2020 - -
General Atlantic 18750000000.00 ₹ 01 Oct 2020 None None
Mubadla 62470000000.00 ₹ 01 Oct 2020 - -
  • Reliance Retail Merger & Acquisition

Acquisition

  • Reliance Brands, a subsidiary of Reliance Industries, has completed the acquisition of British toy retailer Hamleys for GBP 67.96 million (about Rs 620 crore) in an all-cash deal. In May this year, Reliance Brands had signed an agreement to acquire a 100 percent stake in Hamleys Global Holdings from Hong Kong-based C.banner International.
  • Reliance Retail Ventures (RRVL), a subsidiary of RIL, has acquired equity shares of Urban Ladder Home Decor Solutions (Urban Ladder) for a cash consideration of Rs 182.12 crore on 15th November 2020. This investment represents about 96 percent holding in the equity share capital of Urban Ladder. RRVL has the option of acquiring the remaining stake. It has proposed to make a further investment of up to Rs 75 crore, which is expected to be completed by December 2023
  • Reliance Industries, on 18th August 2020, said that its subsidiary Reliance Retail Ventures has acquired a majority equity stake in Netmeds' parent Vitalic for approximately Rs 620 crore giving the Mukesh Ambani-led group, a 60% stake in the Chennai-based company. RIL said that it will also get a 100% direct equity ownership of Netmeds' subsidiaries, Tresara Health, Netmeds Market Place, and Dadha Pharma Distribution.
  • Reliance Retail Subsidiaries

  • Reliance Fresh
  • Reliance Smart
  • Reliance Digital
  • Reliance Jewels
  • Reliance Trends
  • Reliance Footprint
  • Reliance Living 
  • AJIO
  • Reliance Market.
  • Hamleys
  • Netmeds
  • Urban Ladder
  • Reliance Retail Revenue Segmentation

  • Consumer electronic (JIO stores)
  • Fashion & lifestyle
  • Food & Grocery
  • Consumer electronic (Reliance ResQ & Reliance Digital)
  • Others
  • Reliance Retail Product & Services

  • Food & Groceries
  • Fashion & Apparels
  • Electronics & Tele-Communication
  • Footwear
  • Jewelries
  • FMCG
  • Reliance Retail Industry Overview

Industry Statistics

  • Indian retail industry has emerged as one of the most dynamic and fast-paced industries after the entry of several new players in the market.
  • Total consumption expenditure has reached nearly INR 2,925 crores in 2020 from INR 1,68 crores in 2017.
  • It accounts for approximately 10.0% of the country’s gross domestic product (GDP) and around 8.2 % of the employment. 
  • The retail industry reached INR 7,125,000 crores in 2018 at a CAGR of 13% and has reached INR 8,250,000 crore in 2020.
  • Online retail sales were forecast to grow 31.3 % y-o-y to reach INR 2,45,250 crores in 2018.
  • Revenue generated from online retail has reached INR 4,50,000 crores in 2020.

Reliance Retail Awards & Achievements

  • Reliance Retail received the Annapoorna Food Retailer of the Year Award 2019 conferred by the Retailers Association of India (RAI) in association with the Federation of Indian Chamber of Commerce and Industry (FICCI).
  • Reliance Retail featured in the Global 100 Top Retailers – the only Indian company to do so.
  • Reliance Retail has topped the list of 50 fastest-growing retailers globally in Deloitte’s Global Powers of Retailing Report, 2020.
  • Indian Retail Awards 2019 – National Retailer of the Year by Franchise India
  • Indian Retail Awards 2019 – CDIT & Electronics Retailer of the Year by Franchise India.
  • Reliance Digital won Gold for Grand Prix Award for the Most Admired Brand of the Year and Silver for Excellence in Brand Awareness at the ACEF Asian Leadership Award 2018.
  • Reliance SMART won ‘Rapid Expansion with SMART Hyper Model’ award at IMAGES South India Retail Awards 2018.

Reliance Retail Strengths

  • Total Income has been increasing with a CAGR of 76.3% from 2017 to 2020.
  • Operating Profits of the company have been increasing with a CAGR of 116.2% from 2017 to 2020.
  • Profit after Tax of the company has been increasing with a CAGR of 133.6% from 2017 to 2020.
  • It is an Indian retail chain with 900+ stores in 80 cities in India
  • Hyper market with 95,000 markets with tailoring, shoe, and watch repair, laundry

Reliance Retail Shortcomings

  • Company needs to look after the management of its working capital, the current ratio (indicator of Short-term solvency) is lower when compared to other listed peers
  • Poor inventory control at certain locations is a concern

Reliance Retail Opportunities

  • Large potential to reduce operation cost in cities using strong supply chain 
  • It is a sector with high growth potential in India as because India has the 

Reliance Retail Threats

  • Operating cost is too high
  • Walmart is the biggest competitor when it comes to sourcing/ backward integration
Reliance Retail Rating

  • RECOMMENDATION

    Strong Buy

  • Reliance Retail Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

20/02/2021

Registered Date

29/06/1999

Stock Exchange Ticker

rrl

Reg Office: 3rd Floor. Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai- 400002, India

Website: http://www.relianceretail.com