5th March, 2022
In India, there are over 12 lakh registered companies but just around 5,000 of them are listed. This means the chance to find hidden gems — companies that may deliver multibagger returns — is much larger in the unlisted market.
Obviously, it is not an easy task, given most of them are not easily discoverable. Even for those that are relatively known, finding financial data and management quality about them is a tough task.
But what if we say there is one unlisted company that is not just a leader in the space it operates, but it has shown unrelenting growth and boasts of some of the most efficient management in the country?
We are talking about Reliance Retail, which is the largest retailer in terms of revenue in the country. It boasts brands like Jio Mart, Reliance Digital, Reliance Trends, AJIO, Hamleys under its banner. And, perhaps it has just scratched the surface, as it continues to build and acquire more businesses to keep growing at a rapid pace.
Any financial advisor worth his salt would say you should always own a leader in the business who continues to grow, and today there is perhaps no other company as attractive as Reliance Retail. It is a true differentiator in the retail industry and therefore remains an attractive, safe and sure bet for investors. Checkout Reliance retail share price and other details before you make in decisions on investing in this unlisted stock.
Below are five reasons that prove this argument
Most recognisable constellation of brands
One of the simplest investing advice any advisor can give is to invest in those brands that you are most familiar with. That is, look around you, find the products you use everyday, services you employ regularly and stores you frequent — invest in them.
You are less likely to err in that way.
Now look at the following bouquet of brands: Reliance Trends, Reliance Jewels, Reliance Digital, Reliance fresh, Jio Mart, Just Dial, Net Meds, Zivame, Ajio.com, Project Eve, 7-Eleven, Hamleys, Urban Ladder, Dunzo — what is common in them?
They are all owned and operated by Reliance Retail, and there is a very good probability that you have come across, or already using a couple of them regularly. The company is moving ahead with a sole intention to dominate both the supply channel and direct to consumer retail. It has been investing and strengthening its business on both fronts, using other partner services like Jio and WhatsApp.
At one side it is adding stores for the brands it owns at a rapid pace — 9,000 and counting — making sure there is one at everyone’s reach.
Where it cannot reach, it is collaborating with your local grocery and departmental stores to ensure quick delivery and access to its homegrown brands. On the other hand, it is acquiring startups to venture deeper into the e-commerce field.