Most of the other valuations are broadly in sync with the consensus whereby almost one-third, one-third, one-third value is ascribed to retail O2C and essentially Jio. We would like to see some action on the ground and at least on the solar side, some traction to flow through, after which we will be tweaking our numbers. What is the price target on a 12-month basis?Īs per our publish note, we are looking at Reliance SOTP which is close to about Rs 2,900 and that does not ascribe material value to the green energy business that is where we adefer from the Street. You have already highlighted that you are positive on the stock and that the valuations right now are looking attractive. These are not decisions which need to be played for the gallery and at the maximum, the management will take a call which is taking into account several factors and shareholder value will be one of those. In my opinion, one should give the company time. Nor was there any spectacular roadmap laid for the green energy business and how the company would like to unlock value for the minority shareholders and that perhaps is still being carried about the way the stock has underperformed. Partly yes and that is what we had written in our last note that the investors were slightly disappointed that there was no clear timeline in terms of the IPOs of retail as well as Jio. You spoke about retail and telecom and them being key growth drivers but there is no clear timeline in terms of the IPO playing out as some sort of an overhang or a concern? It is not something that will fructify overnight, it will take its own time and to that extent, the investors would need to be patient and give them time to build so that the business will be as robust as one sees in the B2B as well as the B2C segments. It is a daunting task but they are weaving a strategy to make sure that as and when the business starts delivering, the volatility in the earnings should be one of the least. Reliance is trying to build a vertically integrated business model for the energy chain. Probably the supply chains thus far have been disrupted and large corporations are trying to realign their value chains as well. The new energy business is a new animal altogether. The segment seems to have peaked out and new energy is an entirely new area and execution risk persists here. While there are a lot of catalysts for triggers on the upside, let us focus on energy and refining in particular because there has been a lot of volatility with respect to the geopolitical issues and export duty.
0 kommentar(er)
