RIL shares down 11% since Jio Financial listing, m-cap falls;

According to the foreign brokerage, Nomura India, RIL benefits from its favourable crude oil procurement, which would keep realised margins at a significant premium to benchmark margins.

"We value the refinery and petrochemical businesses at 7.5 times EV/Ebitda, resulting in a standalone business valuation of Rs 904 per share. — *RIL: Morgan Stanley reported that while investments in new growth areas are accelerating, Reliance’s monetisation cycles are getting shorter (2-3 years as opposed to 5-6 years in the past).*

Reliance Industries Ltd. (RIL), the most valuable stock in India, has underperformed the BSE benchmark Sensex since Jio Financial Services’ demerger, declining 11% against the 30-pack index’s 3% decline over the same time period.

The market capitalization (m-cap) of the Mukesh Ambani-led firm dropped by Rs 1,89,463 crore to Rs 15,83,122 crore at its closing price on Thursday from Rs 17,72,585 crore on July 20.

The oil to telecom company set the ex-date for the demerger of its financial services division on this day (JFS shares later debuted on August 21).

Nomura India stated this week that it reiterated its “Buy” rating for RIL because it is best-positioned to profit from a strong refining construct and that there are potential upside risks to its conservative refining margin assumptions of $12 per barrel for FY24.

Morgan Stanley stated in a letter on September 20 that investments in new growth areas are accelerating and that Reliance’s monetisation cycles are getting shorter (2-3 years as opposed to 5-6 years in the past).

“E-commerce has gained momentum, and consumer retail is enjoying good traction with store additions. A $20 billion NAV increase from sustainable energy is what we predict. RIL is on the verge of a monetisation cycle and a capex peak in the upcoming quarters, the report stated.