AgenciesICICI Direct has a buy call on Reliance Industries Ltd. with a target price of Rs 2925, with an investment time frame of 12 months. The current market price of Reliance Industries is Rs 2457.5.
Reliance Industries Ltd., incorporated in the year 1973, is a Large-Cap company (with a market cap of Rs 1651804.65 Crore) operating across Diversified sectors.
Reliance Industries Ltd. key Products/Revenue Segments include Petrochemicals, Income From Financial Services, Other Services, Oil & Gas, Others and Income from Retailing for the year ending 31-Mar-2021.
Investment Rationale
Long term prospects and dominant standing of in each of its product & service portfolio, provide comfort for long term value creation. RIL’s consumer business will be the growth driver, going ahead. The company has a strong balance sheet post fund raising while its traditional business will continue to generate steady cash flows. ICICI Direct upgrades the stock to BUY after ~9 per cent correction in the last 1.5 months.
Key event: Reliance Jio raised its prepaid tariffs by ~20 per cent across the board, albeit maintaining the popular packs pricing at 7-14 per cent discount to peers. ICICI Direct expects the full tariff hike flow through to raise the annualised revenues, EBITDA run rate by ~19 per cent, ~35 per cent, respectively, from current levels.
Key triggers for future stock price performance:
Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 178328.00 Crore, up 20.01 per cent from last quarter Total Income of Rs 148591.00 Crore and up 48.06 per cent from last year same quarter Total Income of Rs 120444.00 Crore. Company has reported net profit after tax of Rs 15440.00 Crore in latest quarter.
Reliance Industries Ltd., incorporated in the year 1973, is a Large-Cap company (with a market cap of Rs 1651804.65 Crore) operating across Diversified sectors.
Reliance Industries Ltd. key Products/Revenue Segments include Petrochemicals, Income From Financial Services, Other Services, Oil & Gas, Others and Income from Retailing for the year ending 31-Mar-2021.
Investment Rationale
Long term prospects and dominant standing of in each of its product & service portfolio, provide comfort for long term value creation. RIL’s consumer business will be the growth driver, going ahead. The company has a strong balance sheet post fund raising while its traditional business will continue to generate steady cash flows. ICICI Direct upgrades the stock to BUY after ~9 per cent correction in the last 1.5 months.
Key event: Reliance Jio raised its prepaid tariffs by ~20 per cent across the board, albeit maintaining the popular packs pricing at 7-14 per cent discount to peers. ICICI Direct expects the full tariff hike flow through to raise the annualised revenues, EBITDA run rate by ~19 per cent, ~35 per cent, respectively, from current levels.
Key triggers for future stock price performance:
- Increment value accretion from the ‘digital ecosystem’ that will be captured at the Jio Platforms (JPL) level
- Steady FCF generation in the retail segment would enable the company to maintain debt at lower levels and improve its ability to invest in future inorganic opportunities
- Steady cash flow in O2C segment is expected to continue and will enable RIL to invest in new energy verticals
Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 178328.00 Crore, up 20.01 per cent from last quarter Total Income of Rs 148591.00 Crore and up 48.06 per cent from last year same quarter Total Income of Rs 120444.00 Crore. Company has reported net profit after tax of Rs 15440.00 Crore in latest quarter.
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