Recently the quarterly results of Reliance Retail were released. In which the company’s sales have gone above Rs 3 lakh crore. In this matter, Reliance Retail has left behind the big companies of the country. The special thing is that the brokerage companies of the country and the world have estimated the valuation of Reliance Retail at Rs 9 lakh crore or more, which is much more than other companies.
Mukesh Ambani’s daughter Isha Ambani’s company Reliance Retail has done amazing business. The company has achieved the number one position in terms of sales, leaving behind many big companies. Talking about the figures, the total sales of Reliance Retail in the financial year 2024 were Rs 3 lakh crore. Which is more than the top 7 consumer companies of India including ITC, HUL, Dmart, Nestle, Britannia, Tata Consumer and Godrej Consumer. The special thing is that this figure is about 5 times more than the sales size of Avenue Supermart. Which had made sales of Rs 56,983 crore in the 3 quarters of the last financial year. Now the biggest question is whether the time has come for Reliance Retail to be listed.
What is the estimated valuation?
Many brokerage firms have already raised the valuation of Reliance Retail to the sky. According to estimates, the valuation of Reliance Retail is above 110 billion dollars i.e. 9 lakh crore rupees. Which is much more than the big FCCG companies like ITC and HUL. At present the market cap of ITC is Rs 5.49 lakh crore. Whereas the valuation of HUL is Rs 5.25 lakh crore. Avenue Supermart is at a valuation of Rs 2.99 lakh crore. The market cap of Nestle India is seen at Rs 2.39 lakh crore. The market cap of Godrej Consumer, Britannia, Tata Consumer is a little more than Rs 1 lakh crore.
What is the valuation of which company?
| company’s name | Valuation (in crores of rupees) |
| Reliance Retail | 9,00,000 estimate |
| ITC | 5,48,765 |
| HUL | 5,22,549 |
| Avenue Supermart | 2,99,015 |
| Nestle India | 2,39,111 |
| Godrej Consumer Products | 1,23,004 |
| Britannia Industries | 1,15,954 |
| Tata Consumers | 1,05,279 |
Experts’ argument on valuation
After the release of the fourth quarter results of Reliance Retail, ICICI Securities has estimated the valuation of the company at Rs 9 lakh crore. Which is three times its sales for financial year 2024. According to this assessment, the total debt of Reliance Industries is said to be Rs 2.3 lakh crore. However, no exact information has been given about the total debt of Reliance Retail. Accordingly, the brokerage has estimated the share price of Reliance Retail at Rs 1,332 per share.
With its growing presence both offline and online, continuous improvement in margins and a steadily increasing share of private labels, analysts at ICICI Securities anticipate continued strong growth in the segment over the next two-three years.
In the calculations of global brokerage firm JP Morgan, the enterprise value of Reliance Retail was earlier estimated at $ 112 billion. On the other hand, UBS has estimated its valuation at $110 billion and Bernstein at $111 billion. At $110 trillion, based on April 26 prices, Reliance remains the number one company in terms of retail market-cap.
Sales and profits of companies
| company’s name | Sales (in crores of rupees) | Profit (in crore rupees) |
| Reliance Retail | 2,73,079 | 11,101 |
| ITC | 56,984 | 15,537 |
| HUL | 60,966 | 10,286 |
| Avenue Supermart | 38,062 | 1,972 |
| Nestle India | 24,275 | 3,933 |
| Godrej Consumer Products | 10,609 | 1,333 |
| Britannia Industries | 12,532 | 1,597 |
| Tata Consumers | 15,206 | 1,301 |
Note: Data for these companies is for the first three quarters of FY 2024. Right now only the data of Reliance Retail has come out. The company’s sales have reached above Rs 3 lakh crore.