JM Financial maintains Buy on Reliance Industries, target price Rs 1,580

JM Financial has maintained a buy call on Reliance Industries with an unchanged target price of Rs 1,580. The current market price of Reliance Industries is Rs 1384.95. The time period given by the analyst is a year when Reliance Industries price can reach the defined target. Reliance Industries, incorporated in 1973, is a Large Cap company with a market cap of Rs 1867873.43 crore, operating in a Diversified sector.

Reliance Industries' key products/revenue segments include Petrochemicals, Other Services, Oil & Gas, Others and Income from Retailing for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2,66,293 crore, up 9.05% from last quarter Total Income of Rs 2,44,200 crore and up 10.46% from last year same quarter Total Income of Rs 2,41,067 crore. The company has reported net profit after tax of Rs 22,434 crore in the latest quarter.

The company;s top management includes Mr.Mukesh D Ambani, Mr.Haigreve Khaitan, Mr.K V Chowdary, Mrs.Arundhati Bhattacharya, Dr.Shumeet Banerji, Mr.Raminder Singh Gujral, Mr.K V Kamath, Mr.Yasir Othman H Al Rumayyan, Mr.Akash M Ambani, Mr.Anant M Ambani, Mr.P M S Prasad, Mr.Hital R Meswani, Mr.Nikhil R Meswani, Ms.Isha M Ambani. Company has Chaturvedi & Shah LLP as its auditors. As on 31-03-2025, the company has a total of 1,353 crore shares outstanding.

Investment Rationale
Reliance Industries' consolidated 4QFY25 EBITDA at INR 438bn (flat QoQ and up 3.1% YoY) was a tad below JM Financial estimate of Rs 441 billion but slightly above consensus of Rs 434 billion. Digital and Retail EBITDA was 2-3% above JMFe, but was offset by slightly lower EBITDA in O2C and E&P segments. Robust growth was seen in Retail EBITDA, up 14.3% YoY at Rs 67.2 billion (3.4% above JMFe) led by 15.7% YoY growth in revenue driven by: a) strong growth in grocery across categories led by general merchandise and value apparel; b) traction in consumer brands; and c) steady performance in the F&L segment. Digital EBITDA also was 2.2% above JM Financial estimate at Rs 173 billion on slightly better ARPU while subs addition was robust at 6.1 million; themanagement didn?t comment on the timeline for Jio's IPO or the next tariff hike. However, O2C EBITDA was largely in line at INR 151bn while E&P EBITDA was 2% below JM Financial estimate at Rs 51.2 billion due to decline in KG D6 gas output.

The management said the Petchem and Clean energy projects were largely on track. Consolidated capex was up QoQ to Rs 360 billion in 4QFY25 (vs. Rs 323 billion in 3QFY25); net debt was slightly higher by Rs 16 billion QoQ at Rs 1,171 billion. JM Financia reiterates a BUY (target price of Rs 1,580) as they expect net debt to decline gradually, and also because RIL has industry leading capabilities across businesses to drive robust 15-20% EPS CAGR over the next 3-5 years, particularly driven by both consumer businesses.

Promoter/FII Holdings
Promoters held 50.11 per cent stake in the company as of 31-Mar-2025, while FIIs owned 19.07 per cent, DIIs 19.27 per cent.