Motilal Oswal - MOSL: Morning India (26/November/21): 1. Reliance Industries (How the growth levers are stacked); 2. Coal India (e-auction recovery in sight, premiums to stay)

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MOSL: Morning India (26/November/21): 1. Reliance Industries (How the growth levers are stacked); 2. Coal India (e-auction recovery in sight, premiums to stay)

MOrning India (26/November/21): 1. Reliance Industries (How the growth levers are stacked); 2. Coal India (e-auction recovery in sight, premiums to stay)

Today’s top research idea

Reliance Industries: How the growth levers are stacked

RJio, the telecom vertical of Reliance Industries, is in a sweet spot as peers Bharti and VIL have taken a 20% tariff hike. We expect RJio to follow suit, garnering a 23%/7% upside on RJio / consol EBITDA. Further, improving traction in JioPhone Next should be an aiding factor.
The Retail segment is seeing strong revival across categories during the festive season, accelerated store adds, and healthy scale in the Digital business - these factors should drive sharp growth from 3QFY22.
GRMs are weakening amid a worsening COVID situation in Europe. However, the Petrochem segment should offset the impact on the back of good demand and continued delays in upcoming capacities.
RIL is trading at EV/EBITDA and P/E of 12x and 19x, respectively, on an FY23E basis. The strong earning levers in the Consumer business should support the stock. Using SOTP, we value the stock at INR2,900 and reiterate Buy.

26/11/2021 18 EN

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MOSL: Morning India (26/November/21): 1. Reliance Industries (How the growth levers are stacked); 2. Coal India (e-auction recovery in sight, premiums to stay)

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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