Reliance Retail Unlisted Share

Overview

If Reliance Retail were to become listed on a stock exchange, it would provide an opportunity for investors to buy and sell shares of the company on the open market. This can offer liquidity and potential returns for shareholders. However, until Reliance Retail goes public or is listed, the availability of shares to individual investors may be limited.

If you are interested in acquiring shares of Reliance Retail, you may explore other avenues such as private sales, over-the-counter (OTC) markets, or approaching financial institutions that deal with unlisted shares. Please keep in mind that investing in unlisted shares can be riskier, as they lack the transparency and regulation typically associated with listed companies. It’s crucial to conduct thorough research and exercise caution when investing in such shares. Consulting with a financial advisor or investment professional can help you make informed decisions based on your specific circumstances and risk appetite.

Reliance Retail Unlisted Share Price

Reliance Retail Investment Thesis

Company Overview:

The retail market in India is anticipated to reach US$1,315 billion by FY 2024–25, growing at a CAGR of 10% over the next five years from a projected US$822 billion in FY 2019–20. The organised retail market’s penetration is projected to be 11% in FY 2019–20 and to increase to 18% by FY 2024–25. The organised retail industry is projected to be worth US$88 billion in FY 2019–20 and US$231 billion in FY 2024–25, growing at a CAGR of 19% during the following five years. During this time, the unorganised retail industry is expected to surpass US$1 trillion, making it one of the most lucrative consumer sector prospects globally.

With the goal of revolutionising retail in India, Reliance Retail was established. It is currently India’s largest, most lucrative, and fastest-growing retail firm, offering a diverse omni-channel presence via integrated store formats and internet commerce platforms. It is the only retailer from India that is listed in “Global Powers of Retailing.”

Company Mission:

• Give millions of clients an unrestricted range of options, a compelling value offer, unsurpassed quality, and an unparalleled experience across all goods and services.
• provide services to all segments of Indian society, including homes, kiranas, and merchants as well as small and medium-sized businesses and organisations.
• Through our physical and digital distribution platforms, reach the whole nation.
• Be the go-to partner and create win-win scenarios for our ecosystem of manufacturers, SME’s, brand corporations, and international suppliers.
• provide unprecedented numbers of chances for direct and indirect employment through talent development and skill transformation.

Business Segments:

1. Consumer Electronics:

Competitive Strength:

• Personalised selling supported by logical shop layouts and industry-leading service standards
• The best shipping option allows for delivery within 24 hours of the transaction.
• Requirements for solutions that address the whole product life cycle
• enduring connections with all the major brands, both domestically and abroad.
• Reconnect, JioPhone, and LYF provide exclusive brand licencing and house brands.

Fashion & Lifestyle:

1.Competitive Strength:

• Strong understanding of the various tastes and preferences across geographies combined with strong design and sourcing capabilities.
• Over the past 14 years, on average, 100+ outlets have been added to the fastest-growing retail network.
• Strong portfolio of own brands that provide >75% of the revenues for trends and >60% of the revenues for footwear.
• Partner of choice for worldwide companies, with a portfolio of over 45+ premium, prestigious brands.
• Unmatched integrated omni-channel play with more than 1,000 stores that accommodate both in-person and online orders.

2.Grocery:

3.Competitive Strength:

• a strong value chain with sites for collection, processing, and distribution throughout India.
• the greatest network of retail and digital commerce platforms, and an omni-enabled network at scale.
• Strong own brand portfolio with a large portfolio of own brands encompassing general items, consumer goods, and essentials.
• preferred retail partner for activations, promotions, and new brand launches.
• Hyperlocal digital approach using a distinctive fulfilment mechanism to serve customers and merchant partners.
• Rapid growth with the opening of 600+ new shops.
• launched JioMart, India’s largest hyperlocal platform, and quickly expanded it. With over half of the orders coming from Tier II and Tier III cities, it is still gaining traction across geographies.
• Utilised own network of suppliers and producers to guarantee timely product availability despite pandemic-related interruptions.

4. Pharmacy:

5. Jio:

Peer Comparison:

Financials:

Source: Company Filing AOC-4:

Source: Company Filing AOC-4:

Source: Company Data:

Key Ratios (Quarterly):

Performance for the quarter 1Q FY23

• Since the start of COVID, the business saw its first quarter without any operational hiccups.
• As the COVID situation improved, consumer spending increased as families engaged in leisure activities, socialising, celebrations, and shopping, however attitudes remained cautious owing to fears about inflation.
• As customers started to visit stores again, foot traffic during the quarter, which was reported at 175 million, increased by 19%.
• The increased foot traffic and online visitation resulted in 220 million transactions in the first quarter of FY23, an increase of more than 60% above pre-COVID levels.

Valuations:

• In a macroeconomic climate that remained difficult, Reliance Retail produced its best-ever quarterly sales. Gross Revenue for the first quarter of FY23 was Rs. 58,554 crore ($7.4 billion), up 51.9% year over year.
• The company reported Operating EBITDA of Rs. 3,897 crore ($ 493 million), up 180.4% year over year. The margin increased by 350 bps to 7.6% from 4.1% in the same quarter last year. This was driven by stronger operating leverage with robust LFL increase over last year across consumption baskets, as well as larger contributions from fashion and lifestyle and consumer electronics.
• The quarter’s net profit increased by 114.2% year over year to 2,061 crore ($ 261 million).
• Cash Profit for the quarter increased by 105.2% year over year to Rs. 2,873 crore ($ 364 million).
• The number of customers who have registered has surpassed 200 million. At the conclusion of the quarter, there were 208 million customers, an increase of 29% year over year.
• The company keeps growing its footprint across regions in order to take advantage of the significant market opportunity in the nation. With 792 new stores opening during the quarter, there are now 15,866 locations nationwide, covering 45.5 million square feet.
• With the acquisition of 79 warehouse and fulfilment facilities totaling 3.3 million square feet during the quarter, the company kept improving its supply chain capabilities.
• Even as retailers resume their regular operations, internet commerce platforms continue to expand, with daily orders climbing 64% year over year.
• With its appealing value propositions and continued merchant onboarding across new geographies and consumption baskets, New Commerce operations maintains growing momentum as its merchant base triples in size from the previous year. Over the previous year, every operating statistic increased significantly, demonstrating the merchant partners’ rising confidence.
• Over the previous year, digital and new commerce increased >2x and generated around 19% of gross revenue.
• Through collaborations and acquisitions, Reliance Retail is able to further bolster its skills across all of its companies. With GAP Inc., a well-known American fashion brand, Tod’s, an Italian luxury lifestyle brand, and Pret A Manger, it has inked a master franchise agreement.
• Reliance Retail has also purchased the India franchise rights for Sunglass Hut, a multi-brand premium eyeglasses shop, as well as Catwalk, a well-known women’s footwear brand. By purchasing a stake in the toy manufacturing industry in India, the company also created a joint venture with Plastic Legno SPA’s.
• Over 17,000 new employment were created by Reliance Retail throughout the quarter, improving the social and financial wellbeing of all of our employees and their families. 3.79 thousand people work for the company as a whole.