The 50 reports from 11 analysts offering long term price targets
for Reliance Industries Ltd. have an average target of 1960.30. The consensus estimate
represents an upside of 0.64%
from the last price of 1947.80.
DLF: DLF reported Revenue/EBITDA/APAT at Rs 16.1/4.6/3.3 bn, ~2x/3.7x/3.5x our estimates, on back of revenue recognition from Camellias (Rs 7.5bn). Presales rebounded to Rs 8.5bn vs Rs 1.5bn QoQ. Excluding the sale of AMEX commercial campus, sales bookings stood at Rs 4.7bn, a decline of 35% YoY. While office portfolio remains robust with +98% collections, retail is inching towards recovery with footfall at 35-40% of pre-pandemic level. Gradual recovery in presales, strong launch pipeline and REIT plans for DCCDL augur well for re-rating. We maintain BUY on DLF, with unchanged TP of Rs 219, given healthy balance sheet and change our FY21/FY22/FY23 EPS estimates by 3.5/-3.9/-16.3% to front load revenue from Camellias project. DCB Bank: The better-than-expected operating performance led to an earnings beat, despite higher-than-expected provisions. Even as overall deposits de-grew, the bank's focus on improving deposit granularity was evidenta positive. In the near term, growth is likely to be muted, and the bank is likely to focus on relatively less risky segments. We continue to build elevated GNPAs and provisions, despite the significant improvement in collection efficiency. Our estimates remain mostly unchanged. Attractive valuations and the bank's conservative approach to lending drive our positive stance. We maintain ADD with a target price of Rs 123. Reliance Industries: Our ADD rating on RIL with a price target of INR 2,140 /sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platform, which should enable the company to accelerate the growth of digital connectivity and create value in the digital...
RIL reported standalone revenue/EBITDA of INR 563/76bn, -35/-44% YoY (in line with our estimates). Standalone APAT stood at INR 65bn, -33% YoY (HSIE est: INR 36bn). The deviation in APAT from the estimates was mainly due to the tax expense reversal on account of reduction in the annual effective tax rate for FY21 Our ADD rating on RIL with a price target of INR 2,140 /sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platform, which should enable the company to accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings, (2) recovery in refining and petchem businesses in FY22E, (3) the emergence of a clear path to a stronger balance sheet, and (4) stake sale in the retail business.
RIL Q2 PAT slips 15% YoY; GRM slips to $5.7 per barrel, above estimates RIL achieved revenue of Rs 128,385 crore as compared to Rs 100,929 crore in the trailing quarter. The increase in revenue was primarily due to higher price realizations in O2C segment, strong recovery in Retail operations and sustained subscriber addition with improvement in...
During the quarter, RIL operated its refining and petrochemical units at >90% despite the much lower utilization rates of its Indian peers the company is enjoying the benefits of its integrated Oils-to-Chemicals (O2C) business model. Despite a poor SG GRM benchmark, RIL reported a GRM of USD5.7/bbl. RIL believes the domestic market for petroleum products is poised for recovery. We believe revival in domestic demand, particularly in the Agriculture, Auto, and...
We lower our FY21 standalone earnings by 21% to factor in weak H1 performance. We also change our FY22-23E estimates to factor lower refining and petrochemicals spreads and make changes in finance and depreciation...
9 September 2020 Reliance Industries (RIL) has announced that Silver Lake would invest INR75b in Reliance Retail Ventures Ltd (RRVL) at pre-money equity value of INR4.21t. At an estimated net debt of INR100b, the enterprise value stands at INR4.31t. This implies 1.75% stake at post-money equity value of INR4.29t. We understand this is fresh capital infusion in the company unlike the stake sale done in Jio Platforms. Media reports suggest that more investments could follow in RRVL. These reports are in line with the Chairman and Managing Directors comments in the RIL AGM about strategic stake sale in RRVL, which would aid in nurturing its new ventures like Jiomart. Silver Lake has already invested INR101b in RIL (it has picked up 2.08% stake in Jio Platforms). With combined AUM of >USD60b focused on global tech-enabled opportunities, Silver Lake is a leader in large-scale technology investing.
Given the cost optimization plans, improvement in digital services business, and launch of JioMart, outlook looks promising. We upgrade our rating to BUY with target price of Rs. 2,464 based on SOTP. Topline tumbles on lower throughput and pricing RIL recorded total consolidated revenue of Rs. 91,238cr (-43.8% YoY), on account of decline in Refining, Petrochemicals, and Retail businesses. Refining fell 54.1% YoY to Rs. 46,642cr due to decline in Brent crude oil (-57.6% YoY) and refinery throughput (5.1% YoY). Petrochemicals business declined 33.0% YoY on account of lower price realizations of feedstocks due to COVID-19 lockdown. The segment EBITDA declined...
Q1FY21, Operating Profit down 22% and Net profit up 31%, above estimates RIL achieved revenue of Rs 91238 crore in Q1FY21 a decrease of 44% as compared to Rs 162353 crore in the corresponding period of the previous year. Decrease in revenue is primarily...
RIL reported standalone EBITDA/PAT of INR 71/98bn, -48/+18% YoY. During the quarter, (1) INR 44bn was received from British Petroleum (BP) as part consideration for the sale of 49% stake in RIL's Petro Retail Marketing business (disclosed as an exceptional item), (2) INR 16bn worth of tax credit was availed, which arose out of the planned restructuring of the Oil to Chemicals business. Ex-adjustments, PAT was INR 38bn (-55% YoY), which was 19% below estimates owing to 10/11% lower-than-anticipated petchem production and per ton EBITDA Our ADD rating on RIL with a price target of INR 1,992/sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platform, which should enable the company to accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings, (2) recovery in refining and petchem businesses in FY22E, (3) a clear path to a stronger balance sheet, (4) potential stake sale in Reliance Retail.
Our higher multiple (Bharti India mobile valued at 12x EV/EBITDA) captures the digital revenue opportunity, expected gains from any potential tariff hikes, growing market share and possible rationalization of tax levies for the sector, which are not built into our Reliance Retails revenue declined 17% YoY to INR316b. to improve supply chain to handle home delivery and has already converted some Reliance market stores, partly Reliance Retail is leveraging the AJio platform to drive remained shut and 29% were operating partially. Also, China is likely to export more with an increase in its refinery throughput, deepening the supply glut and enhancing the pressure on product Counter measures by RIL includes focus on its deep petrochemical integration and to expand its fuel marketing business (currently, MS/HSD demand recovery in India is ~90% of Jan levels).
We raise our PT on RIL to factor higher valuation in Jio and retail business on rollover to FY23E vs earlier Sept 22 to factor in higher multiple. We value the hydrocarbon business in Sept 22 valuation at EV/E of 8.5x vs 8x earlier....
10 July 2020 Reliance Industries (RIL) focus and determination with which it has executed its foray into digital and retail segments is highly commendable. This has resulted in our own equity valuation for digital and retail changing from INR315/share three years back to INR1,385/share currently. RILs digital segment has seen partnerships with global giants like Facebook, Microsoft, Intel and host of well known global private equity players. As RIL has achieved a decent foothold in both digital services and organized retail, we believe it would now turn its focus to the oil-to-chemicals project, for which it has signed an MoU with Saudi Aramco. In a conventional refinery, only three products (petrol, diesel and ATF) comprising 60-70% of the product slate, command positive margins. Globally, a conventional refinery produces ~8% of naphtha, which may be used as chemical feedstock. Comparatively, RIL has 24% conversion rate of oil-to-chemicals currently.
Reliance Industries rights issue will be listed on June 15. The rights shares present a very interesting option to participate in company's equity because of the staggered payment plan divided into three tranches of 25% at time of application (already paid), 25% in May 2021
5 June 2020 Net D:E RIL has announced that Mubadala would invest INR90.94b in Jio Platforms for 1.85% equity stake at post-money equity value of INR4.91t and at EV of INR5.2t. Jio Platforms valuation in this deal is in line with the previous four deals at INR4.91t post-money equity. Mubadalas investment is fresh equity infusion into Jio Platforms (like the previous deals) and would not dilute the stake of earlier investors (Facebook, Silver Lake, Vista, General Atlantic and KKR) as RJios capital structure is fixed and this is fresh equity through conversion of OCPS (held by WOS of RIL). Similar to the previous deals, Jio Platforms is expected to retain 10% of the cash and the rest would be transferred to its parent company, which could be subsequently used for deleveraging. Moreover, 10% of Mubadalas investment (INR90.94b) would flow to Jio Platforms and the rest would to the parent company.
RIL have raised Rs670bn through sale of stake in Jio platform to multiple global investors. To further strengthen B/S and capitalize on global opportunities amidst the Covid-19 pandemic, RIL plans to raise Rs531bn...
18 May 2020 Net D:E RIL has announced that General Atlantic would invest INR66b in Jio Platforms for 1.34% equity stake at post-money equity value of INR4.91t and at enterprise value of INR5.2t. Jio Platforms valuation in this deal is in line with the previous two deals Silver Lake and Vista Equity Partners (INR4.9t post-money equity) and is at 12.7% premium to the FB deal (INR4.4t). This is the fourth high profile investment in RIL in less than four weeks, during which the company has raised INR672b for 14.8% equity stake. The fourth high profile investment in Jio Platforms (in less than four weeks) reaffirms the global demand for the company and provides a huge thumbs up for its valuation. The company has a 40-year track record of investing in the technology, consumer, financial services and healthcare sectors. General Atlantic has investments in companies such as Airbnb, Alibaba, Ant Financial Box, Facebook, Uber and other global technology players.
