Reliance Industries Ltd. share price target

Q4 results in line with consensus O2C and digital services performed well; we raise FY23/FY24 EBITDA by 8%/4%

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