Reliance Industries Ltd. share price target

We remain positive on the stock as gradual recovery across the segments, higher demand of Oil and sub-products, and rising customer base under digital services are likely to drive growth in coming periods. Therefore, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 2,313 based on SOTP valuation. Higher demand and increased volumes led revenue growth Q3FY21 consolidated revenue grew by 6.7% QoQ (-21.1% YoY) to Rs. 123,997cr, due to increase in revenue across all verticals mainly in Oil to chemical (O2C) business...

of Shale Gas assets totaling to Rs 15,691 crore and recognition of Deferred Tax Assets of Rs 15,570 crore in respect of the difference between the book base and tax base of the Shale Gas Operations) compared to EO expense of Rs 177 crore in the corresponding previous year quarter (In view of judgement dated 24th October 2019 of the Honourable Supreme Court of...

Reliance Industries (RIL) Q3FY21 result was below our estimates at operational level (in line with consensus) while PAT was higher than our and consensus estimates on the back of deferred tax reversal and lower interest cost. Higher volume in O2C, robust polymer margin, higher ARPU and lower effective tax rate along with lower interest and higher other income swelled net profit. However, the company's new reporting structure (integrated refining & petrochem division to O2C business), led to non-disclosure of GRM. Lower crack spreads and weaker retail division (excl investment income) performance during Q3 was a disappointment. RIL's expanding FTTH, Enterprise solutions and IoT solution for Home to gain market share in long...

Q3FY21 highlights: (a) RIL's EBITDA was in line with estimates at Rs 216bn (5% YoY, +14% QoQ) as Oil-to-Chemicals (O2C) and RJio met expectations while retail outperformed.

We leave our FY22/23E estimates unchanged, but increase FY21 estimates by 34% to factor in deferred tax credit for restructuring of the O2C business and other changes in depreciation and finance charges. Recovering economic activity augurs well for all RIL's business segments and downstream focus...

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...

Q1FY21, Operating Profit down 22% and Net profit up 31%, above estimates RIL achieved revenue of Rs 91238 crore in Q1FY21 a decrease of 44% as compared to Rs 162353 crore in the corresponding period of the previous year. Decrease in revenue is primarily...

Our higher multiple (Bharti India mobile valued at 12x EV/EBITDA) captures the digital revenue opportunity, expected gains from any potential tariff hikes, growing market share and possible rationalization of tax levies for the sector, which are not built into our Reliance Retails revenue declined 17% YoY to INR316b. to improve supply chain to handle home delivery and has already converted some Reliance market stores, partly Reliance Retail is leveraging the AJio platform to drive remained shut and 29% were operating partially. Also, China is likely to export more with an increase in its refinery throughput, deepening the supply glut and enhancing the pressure on product Counter measures by RIL includes focus on its deep petrochemical integration and to expand its fuel marketing business (currently, MS/HSD demand recovery in India is ~90% of Jan levels).

Key highlights from Reliance Industries' (RIL) Q1FY21 results: (a) EBITDA below estimates at Rs 169bn (21% YoY), (b) cyclicals mixed GRM at US$ 6.3/bbl outperformed estimates while petchem EBITDA at Rs 44bn (50% YoY) fell short, (c) retail EBITDA underperformed at Rs 10.8bn (47% YoY) whereas RJio EBITDA was higher at Rs 78bn (+59% YoY) on better ARPU.

Reliance Industries (RIL) Q1FY21 adjusted EBITDA was below our estimates but adjusted PAT beats estimates due to deferred tax write back. Petchem (Rs34bn, IDBIest Rs37 bn), Refining (Rs29bn, IDBIest Rs35 bn) and Retail (Rs7.2bn, IDBIest Rs11.5 bn) EBIT disappointed while Jio EBIT (Rs47bn, IDBIest Rs45 bn) was slightly above expectations. Reported GRM came at US$6.3/bbl vs our estimate of US$6.6/bbl. The company highlighted strong traction at Jio would continue with faster roll out of Jio Fiber and improvement in ARPU. However, O2C business would continue to see challenges in near term. We keep our estimates and TP unchanged at Rs2,154. Though, due to recent...

We raise our PT on RIL to factor higher valuation in Jio and retail business on rollover to FY23E vs earlier Sept 22 to factor in higher multiple. We value the hydrocarbon business in Sept 22 valuation at EV/E of 8.5x vs 8x earlier....