Two factors that can trigger a rally in Reliance
SECTIONS
Last Updated: May 03, 2021, 11:34 AM IST
Share
ET CONTRIBUTORS
Related
NSE
There are near term challenges for
Reliance Retail, but had the situation been a normal one the company would have been back to its way of delivering stronger numbers, says Tarun Lakhotia, Director - Equity Research, Kotak Institutional Equities. Edited excerpts from his interview.
What are your observations on Reliance s retail and O2C business performance?
O2C segment s EBITDA seems to be on the recovery path. Volumes and margins would have been higher in this quarter if you look at global margins for both refining and petrochemical segments. For petrochemicals, it has been fairly robust in the last few months. It is expected to continue in the coming few months as well. So that should hold up well despite may be some challenges which we may see in the domestic markets from the second wave.
URL copied
Reliance Industries share price target Rs 2,500
Reliance share price target: JM Financial has reiterated a buy with a target price of Rs 2,500 as Reliance Industries Limited (RIL) is entering a strong free cash flow generation phase with major capex completed and expectation of strong 17-18 per cent EPS CAGR over the next 3-5 years led by Digital and Retail businesses.
JM Financial said in a report that Jio s subscriber momentum could be bottoming out, given its aggressive strategy to acquire significant quantities of capacity spectrum to regain subscriber momentum via its new Jio Phone offers and impending launch of the low cost smartphones.
MUMBAI: Jefferies has initiated coverage on
Reliance Industries with a buy rating and a target price of Rs 2,600 as it sees the oil-to-telecom conglomerate as a proxy for India s consumption growth story.
The brokerage said that a transition from B2B to B2C and a potential stake sale in the O2C business will usher in the next investment cycle in Reliance Industries.
The brokerage said Jio should further consolidate its leadership position with 25% EBITDA CAGR and gain 450 bps revenue market share to 42% by FY23.
With organized retail only 12% of overall retail and Reliance Retail bigger than the next 10 retailers combined, it is in pole position for growth leadership, the brokerage said. Their contribution in consolidated EBITDA should increase from 37% in FY20 to 49% in FY23, said Jefferies.
Morgan Stanley said RIL is embarking on its journey to address the $800 billion total addressable market in organised retail and e-commerce, $300 billion in chemicals, and $50billion in renewables as demand shifts from oil to alternative fuels.
Explore Now
MUMBAI: It was not a good Monday for Mukesh Ambani, the owner of India’s largest listed company
Reliance Industries, as RIL stock tanked over 5 per cent leading to a notional loss of wealth worth close to $5.2 billion for the family.
The notional wealth lost by the Ambani family today was greater than the market capitalisation of several Nifty50 companies and was equivalent to losing $13 million per minute of today’s trade.
Today’s loss will likely push Ambani to the 12th place in the Bloomberg Billionaires’ Index, where his position was at No. 11 at the time of publishing. According to the index, Ambani’s wealth was at $79.2 billion prior to today’s stock price crash.