Reliance Industries Ltd. share price target

Reliance Retail exit offer targeted at minority shareholders and does not reflect full retail business value

Reliance Industries (RIL) has reported yet another record year of profit growth in FY23, with Q4FY23 cons EBITDA/PAT of Rs384/193bn growing by 23/19% YoY and FY23 EBITDA/PAT of Rs1.4trn/Rs667bn growing by 29/14% YoY, respectively. Strong OTC segment earnings, coupled with a sharp turnaround in the upstream segment and sustained strength of the retail segment drove the improvement.

Q4 beat led by O2C business; investor concerns appeased by introduction of a capital discipline target of 1x net debt/EBITDA

Reliance Jio Infocomm’s (RJio) revenue grew 12% YoY, helped by rise in mobile subs base, faster growth in FTTH and enterprise business. EBITDA grew 16% YoY, supported by lower SUC (added 5% YoY to EBITDA growth), and higher Ind-AS impact; adjusted for it, EBITDA growth probably was in high single digit.

EBITDA momentum likely to continue in Q4 propelled by both cyclical and consumer engines