Buy
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First Light | Reliance Industries, RBL Bank, ICICI Bank
BOB Capital Markets Ltd.
RIL: Jio 2.0 acceleration vital for next wave of growth. RBK: Healthy business growth, stable asset quality; raise to BUY. ICICIBC: Temporary blip; maintain BUY
Buy
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Accumulate
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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...
Results Update
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Buy
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RELIANCE INDUSTRIES LIMITED
Geojit BNP Paribas
Alert
Accumulate
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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
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Buy
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Accumulate
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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
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RELIANCE INDUSTRIES
Prabhudas Lilladhar
Alert
Buy
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Strategy Note
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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.
Alert
Buy
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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
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Accumulate
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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
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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
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Accumulate
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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
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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
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