Reliance Industries Setting The Stage For Multi-Decadal Value Creation, Says Motilal Oswal Maintaining 'Buy'

In the FY25 AGM speech, RIL’s chairman Mukesh Ambani reiterated his ambition to double RIL’s Ebitda by 2027 (vs 2022 levels), set a timeline of H1 CY26 for the IPO of Jio Platforms, targeted 20%+ Retail revenue CAGR over the next three years, and unveiled AI and FMCG as the new growth drivers..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Our earnings estimates are unchanged. We expect Reliance Jio to remain the biggest growth driver with 19% Ebitda CAGR over FY25-28, driven by one more tariff hike, market share gains in wireless, and continued ramp-up of the Homes and Enterprise offerings. Given the recent rationalisation, a low base, and a scale-up of quick deliveries on JioMart and AJio, we expect growth to recover sharply in Reliance Retail Ventrues and build in ~14-15% CAGR in revenue and Ebitda over FY25-28. After a subdued FY25, we expect earnings to recover in the oil-to-chemical segment, driven by an improvement in refining margins. However, our FY28E consolidated Ebitda for O2C and E&P is ~4% lower than FY24 levels.Overall, we build in a CAGR of ~11% in consolidated Ebitda and PAT over FY25- 28, driven by a double-digit Ebitda CAGR in RJio and Reliance Retail and O2C recovery. We model an annual consolidated capex of Rs 1.3 trillion for Reliance Industries Ltd. over FY25-28E, as the moderation in RJio capex is likely to be offset by higher capex in New Energy forays. However, we believe the peak of capex is behind, which should lead to healthy free cash flow generation (~Rs 1 trillion over FY25-28E) and a decline in consolidated net debt..Click on the attachment to read the full report:.Suzlon Energy Can Rally 42% Says Motilal Oswal Citing Regulatory Tailwinds, Robust Order Book.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Reliance Industries Setting The Stage For Multi-Decadal Value Creation, Says Motilal Oswal Maintaining 'Buy'

RIL shares can rally 25% says Motilal Oswal, check target price.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP