InvestorQ : Is the current valuation of Reliance Retail in line with expectations or above the market expectations?
sara Kunju made post

Is the current valuation of Reliance Retail in line with expectations or above the market expectations?

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3 years ago
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The indicative valuation of Reliance Retail has been available based on the price that the company is looking for in terms of the swap ratio between RIL and Reliance Retail. For example, RIL has fixed a swap ratio of 4:1 for employee shareholders of Reliance Retail. This will ensure that some of the Reliance Retail employees will be able to monetize their holdings in Reliance Retail as the shares of RIL are already listed. This ratio values Reliance Retail at a valuation of nearly Rs.250,000 crore. That is nearly twice the valuation accorded to its nearest rival, Avenue Supermart.

This is lower than the implicit valuation accorded to Reliance Retail by most brokerage houses, which is closer to Rs.325,000 crore. How this impacts the valuation of Reliance Industries remains to be seen, but the value accorded to the retail business by the parent company is surely much lower than what the brokerages have been anticipating.

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Anand malavia answered.
3 years ago
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Technical view on reliance -
1. Negative divergence in macd
2. Gapdown opening.
3. Uptrendline broke @ 1557
Conclusion - negative rightnow
Note : Trend can be changed anytime
Educational purposes only.
Thanks

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