Reliance Retail Limited Unlisted Shares

(i) Reliance Retail is the retail initiative of the Reliance group and is central to consumer-facing businesses. It has in a short time forged strong and enduring bonds with millions of consumers by providing them an unlimited choice, outstanding value proposition, superior quality and unmatched experience across all its stores.

(ii) Reliance Retail has adopted a multi-prong strategy and operates a chain of neighborhood stores, supermarkets, wholesale cash & carry stores, specialty stores, and online stores and has democratized access to a variety of products and services across diverse segments for Indian consumers.

(iii) Serving the food and grocery category Reliance Retail operates Reliance Fresh, Reliance Smart and Reliance Market stores.

In the consumer electronics category Reliance Retail operates Reliance Digital, Reliance Digital Express Mini stores, and Jio stores,

In fashion & lifestyle category it operates Reliance Trends, Trends Women, Project Eve, Reliance Footprint, Reliance Jewels and AJIO.com in addition to a large number of partner brand stores across the country.

(iv) The operating model is based on customer-centricity while leveraging common centers of excellence in technology, business processes, and supply chain. More importantly, it has built a strong and unwavering foundation through its extraordinary people. The nationwide network of retail stores offers a world-class shopping environment and unmatched customer experience.

(v) Reliance Retail has emerged as the partner of choice for international brands and has established exclusive partnerships with many revered international brands such as Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision and many more.

(vi) Reliance Retail reported a turnover of Rs. 1,30,566 crore for the financial year 2018-19. As on 31st Mar 2019, Reliance Retail operates 10,415 stores across 6,600+ cities with a retail area of over 22 million sq.ft.

(viii) Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited is the holding company of Reliance Retail Limited which operates the retail business.

Reliance Retail Business Performance Report

Promoters And Management:

Reliance Retail Ventures Limited( Holding Company) holds 99.95% shares in Reliance Retail.

Financials of Reliance Retail Limited Unlisted Shares:

( Figures in Cr )

Year	Revenue	EBITDA	OPM	PAT	NPM	Equity	EPS
2015	16169	854	5.3%	272	1.7%	4,989.54	0.55
2016	18418	932	5.1%	306	1.7%	4,989.54	0.61
2017	26473	1200	4.5%	440	1.7%	4,989.54	0.88
2018	51501	2411	4.7%	1246	2.4%	4,989.54	2.50
2019	130566	6201	4.74%	3400	2.6%	4,989.54	6.8

Valuation of Reliance Retail: (i) Mcap = 2.93 Lakh Crore( at CMP of 600). (ii) EV = 2.96 Lakh Crore (iii) EBITDA = 6201 Cr ( Based on FY19 Financials) (iv) EV/EBITDA= 47 (v) Mcap/Revenue= 2.25 Q1FY20 Performance of the Reliance Retail Peer Comparison  

Avenue Super Mart Snapshot( Figures in Cr)
Year	Revenue		EBITDA	OPM	PAT	NPM	Equity	EPS
2015	6,457.69		477	7.4%	211.67	3.3%	561.54	4.00
2016	8,601.70		682	7.9%	320.2	3.7%	561.54	6.00
2017	11,926.25		1011	8.5%	478.75	4.0%	624.08	8.00
2018	15,102.52		1423	9.4%	806.25	5.3%	624.08	13.00
2019	20,052.87		1682	8.4%	902.54	4.5%	624.08	14

Valuation of Avenue Super Mart: (i) Mcap = 91552 Crore( at CMP of 1476). (ii) EV = 91762 Crore (iii) EBITDA = 1682 Cr ( Based on FY19 Financials) (iv) EV/EBITDA= 54.56 (v) Mcap/Revenue = 4.56 Conclusion: (i) The Reliance Retail at Current Market Price of 600 is currently Undervalued as compared to Avenue Supermart. If you give Mcap/Revenue of 2.5 for FY18-19 financials to Reliance Retail then Fair value would be ~652. (ii) In the Q1FY20, the company has clocked a Revenue of 38000 Cr. If you annualized it then we can say that Revenue for FY19-20 will easily surpass 1,50,000 Cr. If you give Mcap/Revenue of 2.5 for FY19-20 Financials then Fair Value of Reliance Retail would be 750. UnlistedZone Research Report on Reliance Retail