Notes on Indian equities, sectors and economy

How much is Reliance worth?

Posted by fairval on October 22, 2007

A recent report by Isec does sum of parts for RIL. Check this for per share values –

– Refining – Rs 550
– Petchem – Rs 750
– E&P – Rs 900

The E&P business is yet to generate any revenue. It is being valued at more than the refining and petchem business, which are the bread and butter for Reliance.

The E&P business is valued at Rs 125,000 crore or so, or around $30bn. Quite confounding!

Also, in one year, RIL seems to have dramatically increased capital employed in this business. At the end of 2Q07, or a year ago, CE in this business was Rs 7700 crore. At the end of 2Q08, it is around Rs 25,000 crore. So Rs 17000 crore plus ($4.25bn) has been invested in this business in one year! Is it possible for one business to soak in so much capex in one year (what with all kinds of delays in everything one tries to do).


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