I have nothing new to say..but surely this group is starved of ‘income’ and therefore cash flow. The markets especially equity markets love cash flow and certain cash flows at that. If certainty and cash flows are missing, the p/e takes a hammering…so the market capitalisation of the group is down…from great heights reached.
Ok if you are a shareholder of ADAG you have lost money for sure. If you are a unit holder in the mutual fund run by the group – Reliance Mutual Fund do you have to worry? Well look at this:
First you could see talent fleeing: this does not directly affect the performance in the short term..but in the long term this could be an issue.
Reliance infrastructure fund, media fund, infra business and media business – suddenly you will find people questioning this!
If there is a run, NO FUND HOUSE can survive…this could be an issue
declaration: I have no shares or units of Reliance ADAG, or Reliance mutual fund, nor have I gone short on any of the shares…
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