Moneycontrol
Jun 19, 2017 06:24 PM IST | Source: Moneycontrol.com

Buy Reliance Capital; target of Rs 767: Edelweiss

Edelweiss is bullish on Reliance Capital has recommended buy rating on the stock with a target price of Rs 767 in its research report dated June 15, 2017.

Buy Reliance Capital; target of Rs 767: Edelweiss

Edelweiss' research report on Reliance Capital


Armed with an experienced team and heightened focus (now a separate entity), strategically the aim is to move away from being a predominant SME lender to emerge as a diversified lender. The 2-pronged strategy is to carve a niche in personal finance by creating strategic assets (mobile first acquisition process, leveraging group database, etc), while increasing market share in the strong SME domain.


Outlook


Though insurance profitability remains under pressure, we expect improvement post consolidation. We believe potential improvement in earnings will narrow down the discount between current price and inherent fair value of core businesses. We maintain ‘BUY/SP’ with SoTP of INR 767.


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