Reliance Capital Results – Not Good

Reliance Capital’s net profit rose 20.41% to Rs 201.28 crore on 75.58% rise in total income to Rs 391.27 crore in Q2 September 2007 over Q2 September 2006.

Compare this with HDFC Bank, which reported a 40% growth in Net Profit. As an investor we are more confident in HDFC / HDFC Bank than Reliance Capital though we recommend adding those stocks only on market corrections.

The current price of Rs 1,822.40 discounts Q1 June 2007 annualised EPS of Rs 49.14 by a PE multiple of 37.08. Reliance Capital recently launched consumer loans for various purposes.