Brokerage firm CLSA has retained its 'buy' rating on India's biggest company, Reliance Industries Ltd, and increased the target price to Rs 3,060 a share, up 23 percent from its current market price.
CLSA highlighted RIL's commitment to scale up goals and the potential for investment to double, contingent on feasibility. In the past fiscal year, Reliance made three acquisitions totaling $50 million to enhance its new energy capabilities, bringing cumulative investments in this area to $800 million.
The FY23 report confirms goals of 10GW/20GW solar capacity by 2024/2026, and 5GWh/50GWh battery capacity by 2024/2027. Aiming for 100GW solar generation by 2030, Reliance eyes 36 percent share of India's 280GW target. Tech partnerships to boost capex from 2024, driving new energy from FY25. Investments could double from Rs 75,000 crore planned if viability is proven, details expected at the AGM on August 28, the CLSA report said.
The acquisitions involved a 20 percent stake in Caelux Corporation, focused on developing perovskite-based solar technology to enhance crystalline silicon module performance, aiming to boost solar panel efficiency from 23 percent to 28 percent. Another acquisition was 79.4 percent of SenseHawk, a California-based software provider for solar energy management. Reliance also invested in AltiGreen, a Bangalore-based EV technology provider for commercial last-mile transport, with plans for battery supply collaboration.
In the past year, Reliance made initial strides in the new energy sector, partnering with Ashok Leyland to introduce India's first hydrogen-powered commercial vehicle and establish the country's first hydrogen refueling system. Their retail fuel marketing joint venture with British Petroleum (Jio-BP) set up 1,400 EV charging and battery-swapping facilities in eight cities.
This collaboration also inked agreements with Mahindra and Piaggio to explore EV product and service development. Noteworthy achievements include boosting biomass share in petchem sites' coal-fired boilers to 11 percent and conducting successful green hydrogen production tests using torrefied biomass-fired gasifiers.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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