Reliance Industries Ltd. share price target

The FY23 annual report of Reliance Industries (RIL) throws up some interesting data points: i) Capex of INR 1.4trn had grown by a material INR 423bn in FY23, ii) resultant, net debt (including spectrum and other deferred payment liabilities) expanded sharply to INR 1.05trn, despite a material INR 428bn of increase in cash + equivalents for the year.

Q1 results broadly in line as the energy business optimised operations and consumer business continued momentum

Reliance Industries (Reliance) reported YoY flat EBITDA and ~11% YoY decline in net earnings in Q1FY24. The oil-to-chemical (OTC) segment lagged with 27% YoY decline in segmental EBIT, reflective of the weak demand trends in downstream petroleum segment. Upstream, retail and digital services continued to show good YoY momentum – with sharply higher gas production from the new fields and sustained improvement in retail footprint driving growth.

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

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