Reliance Industries Ltd. share price target

Reliance Industries (RIL) reported a strong 34% YoY growth in EBITDA to Rs313.7bn and 27% in net earnings to Rs180.2bn (EBITDA +6% QoQ / PAT +2% QoQ), driven by robust performance across segments.

Reliance Industries (RIL) is set to report strong CAGR in earnings (29%) over FY22-24E led by robust OTC (oil to chemicals) margin environment, steady growth in digital services and strong momentum in its retail segment.

It has been almost a year since RIL outlined its foray into new energy solutions through four Giga factories a) integrated solar photovoltaic factory, b) advanced energy storage, c) electrolyzers manufacturing facility, and c) fuel cells. We examine the prospects of these factories and highlight the various M&As RIL...

We increase our FY23-24E assumptions by 4-8% as we factor in higher GRMs (+USD1.5/bbl) and gas prices (+USD3-3.2/mmbtu), partially offset by higher cost inflation and depreciation charges. Low product inventory and strong demand has pushed oil product spreads, which will benefit complex refiners like RIL. Gas to oil switch is also supporting higher diesel spreads....

Q3FY22 Review: Growth blunts cost inflation, CPI: CPI touches 6%, RIL: Derisking the O2C business

RIL plans to restructure a part of its O2C business to address climate risks and open up new opportunities for value addition

The earlier commissioned Refinery Off-Gas Cracker uses refinery off-gases as feedstock, which is being used for energy/utilities in the Jamnagar complex. The further expansions increased the energy/utilities demand for which the petcoke gasifiers were constructed. The energy demand of the Jamnagar complex is currently being met through fossil fuels including syngas from the gasifiers. The company intends to replace this progressively using a basket of renewables including solar, biomass, and hydrogen and also by changing steam drives to electric drives....

Q3 results a mixed bag retail and oil & gas performed well but digital services and O2C delivered muted sequential growth