Reliance Industries Ltd. share price target

Over the last five years, RIL has seen a huge transformation from being an energy company to becoming a market leader in both the Digital and Retail space. The contribution from its standalone business to consolidated EBITDA has declined to ~60% in FY20 from ~85% in FY15, and is likely to decrease to ~45% in FY23E. On a segmental standalone basis, petchem's contribution to EBIDTA stood ~35% in FY15 and is likely to grow to ~53% in FY23E on the back of various augmentation/upgrades the company has undertaken to integrate and form an Oil-to-Chemicals (O2C) business (with a total capex spend of ~INR2.4t since FY15)....

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...

Q2FY21 highlights: (a) RIL's EBITDA beat estimates at Rs 189bn (14.5% YoY, +12% QoQ) led by better retail and petchem EBITDA of Rs 20bn (13.5% YoY) and Rs 60bn (33% YoY) respectively.

Reliance Industries (RIL) today announced that Silver Lake has agreed to invest Rs75 bn for a 1.75% stake in Reliance Retail Ventures Ltd (RRVL), valuing it at Rs4.3 tr (premoney equity value of Rs4.2tr). We expect the company to be in talks with its other existing investors and we expect few more deals in coming weeks as we had witnessed for Jio Platform. Though, valuation is likely to remain unchanged for coming deals in line with Jio Platform stake sale. The Silver Lake deal size reflects a valuation of EV/EBITDA of 38.4x and EV/sales of 2.4x on FY22E, significantly ahead of our earlier estimates. We further expect a deal at O2C business would add value to its shareholders as making a separate subsidiary for O2C business would fasten the...

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.

RIL: Expanding footprint in retail. DCBB: Clarity on asset quality by Q3FY21

RIL's retail business subsidiary RRVL - announced ~Rs247 bn investment in Future enterprises (FEL).

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...