Motilal Oswal's research report on Reliance Industries
Reliance Industries (RIL) continues to progress on the 40GWh battery GIGA factory, which is set to commence operations in early CY26. We raise the New Energy business valuation for RIL to INR174/sh (earlier INR 116/sh) as we incorporate value for the battery manufacturing segment. We estimate the FY30 New Energy EBITDA at INR169b, ~7% of FY28 Consol. EBITDA, and believe New Energy can be a significant growth driver post FY30. According to our estimate, the actual India demand for BESS can far exceed CEA’s initial India FY32 BESS target of 236 GWh as battery costs decline and new use cases emerge (e.g., Green hydrogen, integration with thermal capacity). The Central government coming out with an approved list of battery manufacturers (similar to ALMM/ALCM) can be a significant growth driver for the sector.
Outlook
We value the standalone business at 7.5x Dec’27E EV/EBITDA to arrive at a valuation of INR411/sh. We ascribe an equity valuation of INR585/sh to RJio and INR625/sh to Reliance Retail (factoring in the stake sale), as well as INR174/sh to the New Energy business.We reiterate our BUY rating on the stock with a TP of INR1,765.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
