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Reliance Industries - How The Growth Levers Are Stacked: Motilal Oswal

Reliance Industries - How The Growth Levers Are Stacked: Motilal Oswal

<div class="paragraphs"><p>The Reliance Industries Ltd. logo is displayed  in Mumbai. (Photographer Adeel Halim/Bloomberg)</p></div>
The Reliance Industries Ltd. logo is displayed in Mumbai. (Photographer Adeel Halim/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Reliance Jio, the telecom vertical of Reliance Industries Ltd., is in a sweet spot as peers Bharti Airtel Ltd. and Vodafone Idea Ltd. have taken a 20% tariff hike. We expect RJio to follow suit, garnering a 23%/7% upside on RJio / consolidated Ebitda.

Further, improving traction in JioPhone Next should be an aiding factor.

The retail segment is seeing strong revival across categories during the festive season, accelerated store adds, and healthy scale in the digital business – these factors should drive sharp growth from Q3 FY22.

Gross refining margins are weakening amid a worsening Covid-19 situation in Europe. However, the petrochem segment should offset the impact on the back of good demand and continued delays in upcoming capacities.

Reliance Industries is trading at enterprise value/Ebitda and price/earning of 12 times and 19 times, respectively, on an FY23E basis.

Click on the attachment to read the full report:

Motilal Oswal RIL Company Update.pdf

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