The shares of Religare Enterprises Ltd., a diversified financial services provider serving across India, experienced a significant decline from their all-time high of ₹702 somewhere in 2008 to a low of ₹17 during the time of the pandemic, a fall of more than 97 per cent. However, over time, the shares have recovered and shot up from 17 in March 2020 to ₹272 in September 2023, a significant increase of over 1,500 per cent. The company has also turned profitable for the last two years after six long years of slackness. This raises the question about whether you should invest in this turnaround story.
Religare Enterprises operates mainly in three business segments: retail broking, lending and health insurance. The company has several subsidiaries, including Religare Finvest Limited (RFL), Religare Housing Development Corporation Finance Limited (RHDFCL), Care Health Insurance, Religare Commodities Limited, Religare Capital Markets International (Mauritius) Limited, and Religare Capital Markets (Europe) Limited (RCME). Religare Enterprises has displayed significant growth in its revenue for the latest Q4FY24 quarter. Its consolidated revenue grew around 33 per cent on a YoY basis to ₹1,856 crore.
For the specified quarter, the company managed to generate ₹236 crore in profit. In the whole FY24 financial year, on a consolidated basis, Religare Enterprises recorded an all-time high in terms of yearly revenue of ₹6,235 crore and generated profit of 347 crore. Around 91 per cent of the revenue for the company came from its insurance business, 5 per cent from broking activities, and the remaining 4 per cent from other business segments. The flagship company of Religare Enterprises, Care Health Insurance registered the highest-ever yearly premium collection of ₹7,022 crore for the same year. The investment book is also up 31 per cent at ₹6,633 crore.
Company Management
This story is from the June 17, 2024 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 17, 2024 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
