3 Brokerage Houses Place A " Buy" & " Add" Call On The RIL Stock
Three leading brokerage firms, including Motilal Oswal, ICICI Direct and ICICI Securities have assigned a " Buy" & " Add" on the stock of Reliance Industries Ltd ( RIL).
RIL is India's one of largest conglomerates.
It has a presence in oil refining and marketing, petrochemicals, oil and gas exploration, retail, digital services, media, and so on, making it a well- diversified business entity.
We value the Refining and Petrochemical segment at an EV/EBITDA of 7 .5 x, arriving at a valuation of INR 879/ share for the Standalone business.
We ascribe an equity valuation of INR 809/ share to RJio and INR1,270/ share to Reliance Retail.
Our higher EV/EBITDA multiples of 35 x for Retail and 15 x for Digital Services underscore new growth opportunities in the Digital space and steady market share gains.
ICICI Direct's Views
According to brokerage, RIL's consumer business will be the growth driver, going ahead.
Tariff hikes undertaken by Jio would be a key monitorable.
O 2 C segment is likely to improve as higher middle distillate cracks would help strengthen GRMs along with a rebound in petchem demand.
"We maintain our BUY rating on the stock. We value RIL at Rs 3050 on an SoTP basis," the brokerage has said.
ICICI Securities' Views
Reliance Industries has reported a strong Q 3 FY 23 with 19 % YoY jump in consolidated EBITDA and a smaller 1 % YoY jump in net earnings ( QoQ EBITDA up 13%, PAT up 15 %).
Stronger performance of the OTC ( oil to chemicals) segment, coupled with sustained momentum from retail and upstream helped earnings.
The stock has been picked from the brokerage reports.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt