Reliance Industries 47th AGM Takeaways: Digital, New Energy Take Centre Stage: ICICI Securities

ICICI Securities Report

Chairman of Reliance Industries Ltd., Mr. Mukesh Ambani laid out an ambitious roadmap to double the company’s current size by FY28, with material growth plans for digital services and retail while scaling up its new energy segment.

Mukesh Ambani highlighted RIL’s intent to double revenue/Ebitda from retail and JIO over the next three–four years along with making the new energy business equivalent to its OTC segment in five–seven years (oil-to-chemical) Ebitda in FY24 at Rs 624 billion), which we believe is ambitious given the announced investment plans (excluding power generation capex) of Rs 750 billion in the segment.

Stellar EPS growth (estimated compound annual growth rate of 14.2% over FY25–27) and the 1:1 bonus issue notwithstanding, our cautious stance remains unchanged, owing to high multiples, muted free cash flow yields and return ratios. Reiterate Hold.

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