Potential Multibagger: Ventura Securities sees 101% upside in this stock
Religare Enterprises (REL) has been carefully unlocking its financial potential. The brokerage has initiated coverage on the stock with a buy call and a target price of ₹471, indicating a multibagger potential upside of almost 101 percent from its current market price of ₹234.40 (as on October 10). Ventura noted that REL is firing on all fronts and poised for robust financial growth and valuation re-rating in the near future.
Its health insurance arm has industry-leading margins and strong operating metrics, while its affordable housing finance and SME lending divisions are embarking on a new growth phase, backed by a strong balance sheet and favorable industry trends, it said. The stock has risen over 36 percent in 2023 YTD as well as in the last 1 year. In 2023 so far, the stock has given positive returns in 5 of the 10 months so far.
It surged the most in August, up 35.7 percent while shed the most in January, down 9.6 percent. The stock recently hit its 52-week high of ₹280.30 on September 21, 2023. It has rallied almost 81 percent so far from its 52-week low of ₹130, hit on March 6, 2023.
REL undertook a major debt restructuring exercise along with revamping the board in FY19. The erstwhile promoters were replaced by appointing Rashmi Saluja (an existing board member) to the helm of affairs. In addition, REL undertook a one-time settlement of ₹2,198 crore in March 2023 (including NCD settlement of ₹20 crore) with 16 of the 17 lenders of its SME lending subsidiary Religare Finvest Ltd (RFL) as total clearance of the latter’s dues and exited the Corrective Action Plan (CAP) imposed by RBI, informed Ventura.
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