Religare Enterprises Stock Research

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Religare Enterprises Detail

Religare Enterprises is in portfolio of Dilip Kumar Lakhi. He is one of the top investors in India. The company belongs to Finance sector.

As per the Company website it is a diversified financial services group. The business operations of the Company is divided into three parts

  • Lending
    • Religare Finvest limited deals with SME Finance
    • Religare housing development finance corporation deals with housing finance
  • Health Insurance
    • Religare health insurance Company deals with Health Insurance
  • Retail Broking
    • Provides broking services

As a group, Religare caters to diverse segments of the market from mass retail to affluent, SMEs to mid-size corporates. Subsidiaries service over 1.1 mn. clients from over 1,275 locations having presence in more than 400 cities.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Religare Enterprises Stock Performance

The stock was trading at levels of 530 in year 2007. If you look at above chart then you will notice that Company has not breached that starting price ever. So it has under performed all these years.The listing price is never touched by bettered by the stock in past decade.

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In early 2018 due to liquidity related crisis all NBFC or Financial stocks took a hit. It is not trading near levels of 25 INR. So the stock came from 500 levels to 25 in last decade becoming one of the best wealth destruction stocks on exchanges.

Religare Enterprises My Opinion

Religare Enterprises is a Financial Company. It operates in most of the Financial niches like Lending, Insurance and Broking. The Company has not performed on exchanges for long.

The sector is very competitive and big business groups have entered the business arena. The sector is growth one and there will be many multibaggers from this pack in near future. Note there has been many multi bagger returns from this pack already.

You need to pick established Company with good backing. In my opinion small companies in this niche will die with time or eaten up with bigger players. This is the case in developed countries where we have selected number of companies.

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This consolidation will happen in India as well so you need to be very cautious while selecting a Company for investment. I have already invested in the sector and planning to increase my exposure with time. I will not be tracking or investing this Company.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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