Accumulate
HSIE Results Daily: Reliance Industries, Hindustan Unilever, UltraTech Cement, Supreme Industries, Metro Brands, CreditAccess Grameen, Home …
HDFC Securities
Metro Brands: Revenue grew 6.1% YoY (on a high base) to INR 6.4bn (HSIE: INR 6.8bn). Products > INR 3,000 accounted for 49% of the mix in 9MFY24 vs. 44% in 9MFY23. KPI (sales density, margins) normalization continues, led by (1) tough comparables vs base (Q3FY23 comprised meaningful pent-up demand and higher wedding days) and (2) sales loss during World Cup weekends (per channel checks). EBITDAM declined 296bps YoY to 31.3% (HSIE: 32.4%), courtesy (a) lower sales density, ergo weak fixed-cost absorption. (2) front-loading of expansion-led costs. Store addition guidance on track (100 stores in FY24). We marginally cut our FY25/26 EPS estimates by 2.3/1.5% and maintain our SELL rating on the stock with a DCF-based TP of INR870/sh, implying 45x Mar-26E P/E. CreditAccess Grameen: CreditAccess Grameen's (CREDAG) Q3FY24 earnings were ahead of our estimates due to sustained impressive margins (13.1%) and improving operating efficiency. While AUM growth remained healthy (31.5% YoY), disbursals were muted (10.3% YoY) as the upgrade of the CBS platform impacted the business for a couple of weeks. Asset quality deteriorated sequentially (PAR-0/GNPA at 1.8%/1% vs. 1.3%/0.8% in Q2), driving higher-than-expected credit costs (~2.5%). CREDAG remains poised to deliver healthy profitability (~5%+ ROA) and strong growth (~25% AUM CAGR during FY24-FY26E). However, as highlighted in our Company update, CREDAG's peak profitability seems behind due to expected moderation in margins and loan growth, while the stock price provides little margin of safety. Maintain ADD, with RI-based TP of INR1,720 (implying 3.1x Sep-25 ABVPS). Home First Finance Company: HOMEFIRST's Q3FY24 earnings were higher than...
Buy
RELIANCE INDUSTRIES LIMITED
Geojit BNP Paribas
Accumulate
Reliance Industries (Q2FY24): Robust earnings from energy businesses. Maintain ADD
HDFC Securities
We use EV/EBITDA to value downstream at Mar-25E EV/e, retail on peer benchmarked EV/e and E&P and Jio on DCF. The stock is currently trading at 10.3x Mar-25E EV/EBITDA and 20.4x Mar-25E EPS. Our ADD rating on Reliance Industries (RIL) with a price target of INR 2,515/sh is premised on (1) recovery in the O2C businesses, (2) EBITDA growth in the digital business, driven by improvement in ARPU, subscriber addition, and new revenue streams, and (3) potential for further value unlocking in the digital and retail businesses. RIL's consolidated EBITDA at INR 410bn (+32% YoY, +8% QoQ, HSIE: INR 385bn) and APAT at INR 174bn (+27% YoY, +9% QoQ) came in above our estimates, supported by better-than-expected performance from its energy businesses.
Results Update
Reliance Industries Limited
SMC online
Buy
Reliance Industries (BUY): Jio 2.0 key to growth momentum
BOB Capital Markets Ltd.
Q2 results broadly in line, with continuing structural growth in both consumer businesses and resilience in cyclical energy businesses
Accumulate
A Strong quarter; return ratios improvement remains elusive over the next 12-18 months
ICICI Securities Limited
Reliance Industries (Reliance) saw a strong 31%/27% YoY growth in EBITDA/net earnings in Q2FY24, driven by a 44% YoY jump in oil-to-chemical (OTC) segment EBIT, and continued momentum in Upstream, retail and digital services. With sharply higher gas production from the new fields and sustained improvement in retail footprint driving growth.
Buy
RELIANCE INDUSTRIES
Prabhudas Lilladhar
Buy
Standalone gains; Consumer on a steady path
Motilal Oswal
Strategy Note
Mukesh Ambani maps out the next decade for Reliance
Trendlyne Analysis
The annual general meeting hosted by Reliance Industries (RIL) is a highly anticipated event in the corporate calendar.
Buy
Reliance Industries (BUY): AGM takeaways Long growth runway, reiterate BUY
BOB Capital Markets Ltd.
Pivoted towards consumption and new-age technology in India and beyond for sustainable growth
Buy
RELIANCE INDUSTRIES
Prabhudas Lilladhar
Accumulate
RIL AGM – Lays out blueprint for next decade; succession plans take concrete shape
ICICI Securities Limited
Reliance Industries (RIL), in its latest AGM laid out the blueprint for value creation over the next decade, with its emphasis on continuing its transition to a new-age digital conglomerate. With emphasis on growing its digital footprint by expanding Jio’s product and solutions bouquet, accelerating efforts to transition to new energy and specialty chemicals, and continuing to leverage the world-scale platform established by its retail segment, RIL sees a radically different future for itself over the next decade vs the last 40 years.
Accumulate
FY23 Annual Report – broad-based earnings strength; FCF remains negative
ICICI Securities Limited
The FY23 annual report of Reliance Industries (RIL) throws up some interesting data points: i) Capex of INR 1.4trn had grown by a material INR 423bn in FY23, ii) resultant, net debt (including spectrum and other deferred payment liabilities) expanded sharply to INR 1.05trn, despite a material INR 428bn of increase in cash + equivalents for the year.
Buy
RELIANCE INDUSTRIES LIMITED
Geojit BNP Paribas
Accumulate
HSIE Results Daily: Reliance Industries, ICICI Bank, Kotak Mahindra Bank, AU Small Finance Bank, CreditAccess Grameen, …
HDFC Securities
CreditAccess Grameen: CreditAccess Grameen (CREDAG) delivered a strong all-around performance in a seasonally muted quarter, with most key metrics well ahead of our estimates. AUM growth was at a staggering 39.7% YoY, driven by new customer additions and simultaneously higher average ticket sizes. Asset quality stayed impressive with PAR-0/GNPA at 1.2%/0.9%, resulting in subdued credit costs. Sustained asset yield reflation and subdued credit costs drove RoA/RoE of 5.8%/26.4%. While the management reiterated that the Q1FY24 earnings profile could see incremental pressure from higher funding costs and opex intensity, CREDAG is poised to sustain a combination of strong growth, low credit costs and sustained profitability in the medium term. We raise our FY24E/FY25E earnings estimates by 5%/4% for higher-than-expected loan growth and NIMs and maintain BUY, with a revised TP of INR1,470 (3.2x Mar-25 ABVPS). Our implied multiple reflects the snowballing effect as a consistently conservative underwriting approach in an inherently risky business translates into high cross-cycle potential RoEs (>20%). IndiaMART InterMESH: IndiaMART posted in-line revenue growth and strong cash collections (+26% YoY). The growth in supplier additions was lower than estimated at ~5K, which was partially offset by higher realisations (+2.3% QoQ). The price hike in the entry-level package impacted paid supplier addition but led to ARPU improvement, also supported by migration to a higher ARPU bucket (~2% of the paid suppliers upgrade). Strong cash collections provide visibility of >25% YoY growth in FY24E, the margin will gradually expand to ~30% as most of the investments are behind. The sales headcount growth will be in line...
Accumulate
Reliance Industries (Q1FY24): Muted O2C performance. Maintain ADD
HDFC Securities
We use EV/EBITDA to value downstream at Sep-24E EV/e, retail on peer benchmarked EV/e and E&P and Jio on DCF. The stock is currently trading at 11.5x Sep-24E EV/EBITDA and 22.1x Sep-24E EPS. Our ADD rating on Reliance Industries (RIL) with a price target of INR 2,700/sh is premised on (1) recovery in the O2C businesses, (2) EBITDA growth in the digital business, driven by improvement in ARPU, subscriber addition, and new revenue streams, and (3) potential for further value unlocking in the digital and retail businesses. RIL's consolidated EBITDA at INR 381bn (+1% YoY, -1% QoQ, HSIE: INR 382bn) and APAT at INR 160bn (-11% YoY, -17% QoQ) came in below our estimates. Earnings in Q1 were largely impacted by weaker-than-expected O2C profitability.
Buy
Reliance Industries (BUY): Steady she goes
BOB Capital Markets Ltd.
Q1 results broadly in line as the energy business optimised operations and consumer business continued momentum
Accumulate
Operationally in-line performance; H2 prospects appear stronger
ICICI Securities Limited
Reliance Industries (Reliance) reported YoY flat EBITDA and ~11% YoY decline in net earnings in Q1FY24. The oil-to-chemical (OTC) segment lagged with 27% YoY decline in segmental EBIT, reflective of the weak demand trends in downstream petroleum segment. Upstream, retail and digital services continued to show good YoY momentum – with sharply higher gas production from the new fields and sustained improvement in retail footprint driving growth.
Buy
Consumer business compensates for the weakness in O2C
Motilal Oswal
Buy
Reliance Industries (BUY): Consumer and new energy businesses key catalysts
BOB Capital Markets Ltd.
Reliance Retail exit offer targeted at minority shareholders and does not reflect full retail business value
I am a financial analyst with a deep understanding of the stock market and a focus on analyzing companies in various sectors. My expertise includes evaluating financial reports, understanding market trends, and making informed investment recommendations.
Now, let's delve into the information provided in the article related to Reliance Industries and other companies mentioned:
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Reliance Industries (RIL):
- The stock is currently trading at 10.3x Mar-25E EV/EBITDA and 20.4x Mar-25E EPS.
- The consolidated EBITDA for RIL at INR 410bn (+32% YoY, +8% QoQ) and APAT at INR 174bn (+27% YoY, +9% QoQ) exceeded estimates.
- The O2C businesses experienced a recovery, and the digital business showed EBITDA growth driven by improved ARPU, subscriber addition, and new revenue streams.
- There is a potential for further value unlocking in the digital and retail businesses.
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HDFC Securities: Metro Brands:
- Metro Brands' revenue grew 6.1% YoY to INR 6.4bn.
- Products > INR 3,000 accounted for 49% of the mix in 9MFY24.
- EBITDAM declined 296bps YoY to 31.3%, with reasons attributed to lower sales density and front-loading of expansion-led costs.
- Store addition guidance on track with plans to add 100 stores in FY24.
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CreditAccess Grameen:
- Q3FY24 earnings were ahead of estimates.
- AUM growth remained healthy at 31.5% YoY, but disbursals were muted due to the upgrade of the CBS platform.
- Asset quality deteriorated sequentially, leading to higher-than-expected credit costs (~2.5%).
- CREDAG remains poised to deliver healthy profitability (~5%+ ROA) and strong growth (~25% AUM CAGR during FY24-FY26E).
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Home First Finance Company:
- Q3FY24 earnings were higher than expected (details not provided).
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Broker Reports from Various Institutions:
- Recommendations range from SELL to BUY with different price targets.
- Reports highlight different aspects, such as robust earnings, growth momentum, key catalysts, and consumer business compensating for weakness.
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AGM Takeaways (August 28, 2023):
- Reliance Industries emphasized transitioning to a new-age digital conglomerate, growing its digital footprint, and leveraging its retail segment's world-scale platform.
- The AGM laid out the blueprint for value creation over the next decade.
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FY23 Annual Report Highlights (August 23, 2023):
- Capex of INR 1.4trn had grown, resulting in a material increase in net debt.
- Reliance Industries continued its transition to a new-age digital conglomerate.
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Trendlyne Analysis (September 7, 2023):
- Mukesh Ambani mapped out the next decade for Reliance at the annual general meeting.
This overview provides insights into the performance, challenges, and strategic direction of Reliance Industries and other mentioned companies in the given period.
