A SIGNIFICANT TURNAROUND

Given the fact that Religare Enterprises Limited's stock has bounced from a mere 17 to 272 in a short period of one year, it is time for investors to know the inside story of how the company is faring now and, more interestingly, the involvement of the Burman family that has been increasing its stake

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The shares of Religare Enterprises Ltd., a diversified financial services provider serving across India, experienced a significant decline from their all-time high of ₹702 somewhere in 2008 to a low of ₹17 during the time of the pandemic, a fall of more than 97 per cent. However, over time, the shares have recovered and shot up from 17 in March 2020 to ₹272 in September 2023, a significant increase of over 1,500 per cent. The company has also turned profitable for the last two years after six long years of slackness. This raises the question about whether you should invest in this turnaround story.

Religare Enterprises operates mainly in three business segments: retail broking, lending and health insurance. The company has several subsidiaries, including Religare Finvest Limited (RFL), Religare Housing Development Corporation Finance Limited (RHDFCL), Care Health Insurance, Religare Commodities Limited, Religare Capital Markets International (Mauritius) Limited, and Religare Capital Markets (Europe) Limited (RCME). Religare Enterprises has displayed significant growth in its revenue for the latest Q4FY24 quarter. Its consolidated revenue grew around 33 per cent on a YoY basis to ₹1,856 crore.

For the specified quarter, the company managed to generate ₹236 crore in profit. In the whole FY24 financial year, on a consolidated basis, Religare Enterprises recorded an all-time high in terms of yearly revenue of ₹6,235 crore and generated profit of 347 crore. Around 91 per cent of the revenue for the company came from its insurance business, 5 per cent from broking activities, and the remaining 4 per cent from other business segments. The flagship company of Religare Enterprises, Care Health Insurance registered the highest-ever yearly premium collection of ₹7,022 crore for the same year. The investment book is also up 31 per cent at ₹6,633 crore.

Company Management