Unlisted Shares

Established in 2006, Reliance Retail has evolved into India's largest retailer, consistently providing exceptional value to customers, suppliers, and shareholders. As the 53rd-ranked entity among the Top Global Retailers, it holds the distinction of being the sole Indian retailer within the Top 100.

Strong Presence - Throughout the year, Reliance Retail expanded by opening over 3,000 stores, reaching a total of 17,053 stores spanning 62 mn sq. ft. This growth extended the company's leadership into tier II and III markets. With 249 mn registered customers across its formats, Reliance Retail achieved over 780 mn footfalls in FY23, unmatched by any other Indian retailer.

Brand Portfolio - Reliance Retail manages a diverse range of formats including Trends, Trends Woman, Trends Man, Trends Footwear, Avantra by Trends, Azorte, Centro, Reliance Jewels, Hamleys, along with a portfolio featuring over 50 renowned international brands. Some notable brands in their portfolio include GAP, Armani, Burberry, Diesel, GAS, Marks & Spencer, Superdry, Brooks Brothers, Steve Madden, and many others.

Key Stakeholders - The firm operates as a subsidiary of Reliance Retail Ventures Ltd., with the latter holding a majority equity share of 99.93%. The company benefits from the effective leadership and management of Isha Ambani.

Revenue - In FY23, the company showed robust performance with a noteworthy Rs. 53,693 cr revenue increase. Over the past 5 years, the company outpaced the industry average with a 38% (industry avg. 20%) growth rate, but in FY23, the growth rate moderated to 32%.

Profit margins - In FY23, the company's substantial increase in net income, driven by a 32% rise in revenue, can be attributed to the successful creation of a diverse portfolio of proprietary brands. The expansion of the customer base has significantly boosted sales and profitability, leading to improved profit margins from 2.9 to 3.1 and a strengthened market position.

Investment thesis - In FY23, the company strategically expanded, achieving strong financial results marked by robust revenue growth and profitability. Notably, the stores attracted an impressive footfall of over 780 mn, reflecting a significant 50% year-on-year increase. Throughout the year, the company demonstrated resilience, innovation, and successful market penetration, consolidating its position within the retail sector. However, upon conducting a thorough analysis, it appears that the company may be somewhat overvalued. The EV/EBITDA multiple stands at 42.9x, surpassing the industry median of 25.0x when compared to key competitors such as Avenue Supermarts, Trent, Aditya Birla and Fashion. The intrinsic value is calculated at Rs. 669. However, a comprehensive analysis of growth strategies, market trends, and financial metrics is advisable.​