Why did Reliance take out a $2 billion loan?
The stock of Reliance company (RIL LTP: 2324.40) has been down a lot in the month of March. In fact, it has been down consistently for the whole month…everything is not very good…..stock of March 20 made 52 week low at 2218. Why…Reliance has gone down 8.52% in just one year and has lost 11.43% in comparison to…
Let’s see why Reliance shares are falling
FII is still selling – according to JP Morgan, FII selling in Reliance has fallen to 6 years low
Weak O2C Segment – Oil to Chemical segment is the main business of Reliance..and from here income has grown every quarter..where 71% in Q1 and 65.6% in Q3.
No Tariff Telecom Hike – Due to this there is a lot of pressure on revenue.
Negative Market Sentiment – There is a lot of negative market sentiment in the face of the US Bank collapse and volatile market, which has affected the Indian market, and Reliance shares are also…
And now Reliance is taking a loan on loan
On March 31st, Reliance took a loan of $3 billion and then used an add-on forex loan of $2 billion. The loan is taken from 55 banks, including almost a dozen Taiwanese banks, and the rest from bad banks like Bank of America, MUFG, Citi, SMBC, Mizuho, and Credit Agricole.
Why are there loans?
Well, to refinance current loans…which is very costly.
Will Reliance share now?
Let’s analyze from the P/E ratio….
The latest TTM PE Ratio is 24.81…Yes, the stock is still overpriced but is not in the overbought zone, performance is average raha hai and valuation is higher than the market average…But the company’s profitability is high and continuous profits are being generated. Therefore According to the analyst, it is possible to buy this share….
let’s see some financial important numbers FY2019 to FY 2022
So what do you want to buy?
Revenue growth in the last 5 years – at an annual rate of 17.94%, vs industry avg of 13.26%
Market share has also increased in the last 5 years – from 27.53% to 33.7%
In the last 5 years, there is also income at an annual rate of 15.21%, vs an industry avg of 8.9%.
Overall, एनालिस्ट से अकाउंट से लिया जा सकता है…अगर आपको रिलायंस के शेयर को खरीदना है या एवरेज करना है तो आप अपने एंड पर अपने पोर्टफोलियो के अकाउंट से टेक्निकल और फंडामेंटल एनालिसिस के बाद ही एंट्री लें…। वैसे तो अभी काफी एक्सटर्नल फैक्ट्स भारी पड़ रहे हैं, लेकिन लॉन्ग टर्म के लिए ये एंट्री प्वाइंट काफी अच्छा हो सकता है..आखिर शेयर अपने 52-वीक लो के नजदीक जो है