Reliance Home Finance: Demerger done, now on to execution

While the company has ambitious growth plans, its ability to scale up while keeping costs down and asset quality strong will be key

 

In a bearish market when the benchmark indices were down over a per cent, Reliance Home Finance, the demerged subsidiary of Reliance Capital, hit the upper circuit and closed with gains of over five per cent on its debut at Rs 109.2 on the BSE. The demerger and separate listing is expected to bring in better focus and more efficient capital allocation, believe analysts. While valuations are reasonable at current levels and the company has robust growth plans, execution will be crucial. 

The company has set an ambitious target, which