Reliance Industries Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 1512843.85 Crore) operating in Diversified sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 158133.00 Crore, up 23.11 % from last quarter Total Income of Rs 128450.00 Crore and up 12.65 % from last year same quarter Total Income of Rs 140373.00 Crore. Company reported net profit after tax of Rs 14981.00 Crore in latest quarter.
Investment Rationale
Using SOTP, the brokerage values the O2C business at FY23E EV/EBITDA of 7.5x, arriving at a valuation of INR764/share for the standalone business, and add INR68 for the E&P assets. It ascribes an equity valuation of a) INR847/share to RJio on FY23E 20x EV/EBITDA and b) INR755/share to Reliance Retail on FY23E 35x EV/EBITDA, factoring in the recent stake sale. It reiterates Buy, with TP of INR2,430/share.
Promoter/FII Holdings
Promoters held 49.1 per cent stake in the company as of March 31, 2021, while FIIs held 27.8 per cent, DIIs 12.5 per cent and public and others 10.6 per cent.
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