April 23, 2024

Sharekhan’s analysis report on Reliance Industries

Q3FY24 consolidated EBITDA of Rs.40,656 crore (down 0.8% q-o-q) beat our estimate by 2% primarily led by EBITDA beat throughout standalone, retail and Jio. Oil & gasoline phase’s EBITDA was up 21% q-o-q led by increased gasoline manufacturing whereas that of O2C declined by 21% q-o-q to Rs. 11,069 crore. Retail sustained development momentum with 8% q-o-q income development/steady margin of 8.1% and thus retail EBITDA grew by 8% q-o-q to Rs. 6,061 crore. Jio EBITDA up 3% q-o-q however flat ARPU of Rs. 181.7, dissatisfied. Robust development in retail given retailer growth, potential telecom tariff hike/5G adoption and comparatively steady O2C enterprise (together with probably restoration in petchem) to drive earnings development (anticipate 15%/14% EBITDA/PAT CAGR over FY23-26E) for RIL. New Vitality Giga Complicated to be commissioned in H2CY24 and would drive long-term development.

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We firmly consider that RIL is a compelling long-term funding guess given robust prospects throughout companies and potential worth unlocking from retail, digital companies, and monetary companies portfolio would create long-term worth for shareholders. We preserve a Purchase with a revised SoTP-based PT of Rs. 3,130. At CMP, the inventory trades at 19x its FY26E EPS and 9.2x its FY26E EV/EBITDA.

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Reliance Industries – 20012024 – khan