Why Religare Enterprises Has Surged 30% In Last One Month 

Financial services provider Religare Enterprises' shares have surged a whopping 30 per cent in last one month to hit high of Rs 172 massively outperforming the BSE benchmark Sensex which has advanced 0.12 per cent during the same time frame. Religare Enterprises shares witnessed buying interest after the company's management resolved its legacy problems and helped restore its place as a major player in banking, financial services and insurance (BFSI) industry, analysts said.

Credit ratings agency CARE Ratings earlier this month upgraded Religare Broking's long term and short term bank facilities worth Rs 500 crore from BBB- to Stable A3. 

The company became debt free by repaying its debt to Religare Finvest and is working towards expanding its health insurance and broking businesses. Religare's stock broking business saw its best year in 2021 in last five years in terms of revenue, transactions and profitability as many people took to stock market trading after Covid-19 pandemic. Data from CDSL showed that total number of demat accounts in India crossed 10 crore last month. 

The broking business of Religare has over 10 lakh clients and offers service in equity, currency, commodities, mutual funds, insurance, NPS, and depository services across the country. Religare's broking arm has so far this year generated revenue of Rs 282 crore. 

The company is also planning to expand its portfolio of health insurance and housing finance businesses, the company said. 

"Care Health Insurance is the fastest growing health insurance co in the country. Our Housing finance is also consistently profitable In addition to its current subsidiaries, REL plans to launch additional businesses in the financial year 2023, including insurance broking, digital wealth management, asset reconstruction, and alternate investment funds," said Rashmi Saluja, Executive Chairperson, Religare Enterprises. 

Its housing finance business has assets under management worth Rs 350 crore, 4,000 customers and network of 26 branches in 10 states of the country. 

"The company has been profitable since inception and our net worth is around Rs 250 crore. Our average ticket size is around 10 lakhs and we do both home loans and loans against property with primary focus on affordable housing finance," the Delhi-based financial services firm said. 

The company also plans to foray into asset reconstruction (ARC), alternate investment funds, insurance broking and digital wealth management businesses. 

As of 1:56 pm, Religare Enterprises shares traded 2.5 per cent lower at Rs 167.