Reliance Industries Q4 Results Review - Oil-To-Chemical, Jio Ebitda Growth Driver: Dolat Capital

Dolat Capital Report

Reliance Industries Ltd.'s Q4 FY24 headline numbers came slightly below our estimates with revenue/Ebitda/profit after tax growth of +5%/+5%/+10% QoQ. Oil-to-chemical and Jio led the show, but there was a weak performance by retail.

Sharp reduction in capex (-48% YoY/-13% QoQ) post 5G rollout and slowdown in retail store addition. Going forward, we expect moderation in capex, which will improve free cash flow and reduce the net debt.

We forecast Ebitda/PAT compound annual growth rate of 14%/22% for FY24-FY26E with Jio contributing 48% share on the back of a tariff hike and retail contributing 21% on operating leverage and improved throughput.

We tweak our FY25E/FY26E EPS estimates by +3%/+2% to factor in-

1. recovery in petrochemical margins; and

2. higher operating efficiency at O2C unit.

Maintain ‘Accumulate’ rating with an upward revision in SoTP based target price at Rs 3,260 (versus Rs 3,010 earlier) mainly due to expansion in telecom valuation multiple and decline in net debt on moderation of capex.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.