In one of the first brokerage reports on Reliance Capital , ENAM Securities has attempted to value the stocks potential value in 2009. CNBC-TV18's research analyst, Rohit Shimpi finds out more.

While ENAM has not rated the stocks explicitly, they have taken a valuation based on what sort of potential value each of the Reliance Capital businesses could have in 2009, says Shimpi.

Giving details about this valuation, he says, for the mutual fund businesses, ENAM has valued REL Capital at around 4% of what their assets could be in 2009, which works out to be Rs 82 per share. For the NBFC business, they have valued it at two times book, which gives it a valuation of Rs 432 per share. For the investment they valued, the potential value it could have in 09 would be about Rs 41per share, informs Shimpi. 

ENAM on REL CAP Potential Value By 2009

AMC Business: Rs 82 per share NBFC Business: Rs 432 per share Investments: Rs 41 per share Life Insurance: Rs 306 per share Non-Life Insurance: Rs 42 per share Broking & Financial Products: Not assigned any value Total Value by 2009: Rs 902 per share Net Present Value: Rs 522 per share

According to ENAM, life Insurance business is where a lot of value will come in. They valued it at Rs 306 per share for FY09.  For the non – life insurance, they valued it at Rs 42 per share, giving REL a total value of just over Rs 902 per share in 2009, says Shimpi. 

Next, they have actually discounted this to the current price, which means over the three years from now till 2009, they discounted at a  20% rate, which gives them a fair value of Rs 522 per share, very close to its current trading price of Rs 500 per share, he says.