पोस्ट करनेवाले : bhusbhac
| Price when posted : BSE: Rs 987.35 ( -0.50 % ), NSE: Rs. 987.05 ( -0.60 % )|
Is 44%-46% stake in RIL a small matter? Also the promoters increasing their holding would send out wrong signals to government officials, Hon SC and others.
Frankly speaking RIL is trading at a price to book of 1.60 (down from around 4) and has progressed in EPS from 95 to 160 in the 5 years period. I think that is what matters to the promoters as it is having a healthy balance sheet to move forward. Since the promoters are not interested to sell their stake in shareholding (you know what happens in case of divestment) then it is upto shareholders to value the shares at whatever price. There is no real urgency for the company to have the share price re-rated as it can go head and borrow 2 lakh crores without a whimper.
It is the promoters` perception of not selling and not investors` perception which will count. IF RIL turns out a profit of Rs 7000 on its road to Rs 10,000 per quarter. When the market stupidly follows EPS and PE blindly then why should promoter`s shore up the value of the shares when it is not affecting the growth of their business going forward and they are not mortgaging their shares?
Shoring up share valuations are for operators as FIIs even do for IT shares since afterall they are nothing but operators breeding on small investors.