MESSAGES

this great company has every no.1 business under its umbrella even making to suffer its loyal investors in share price this behaviour is very much worrisome being no.1 listed company this has to be corrected may be with severe action

Great Analysis feel the same due to the combined structure of businesses RIL is not getting the desired valuation it is dragging because of o2c business whose pe generally should be much lower but since the retail business are also included alongwith digital business the pe looks higher, retailers on an avg have around 40-50 pe digital business have pe upwards of 40, feels like it is undervalued from a long term perspective and if it spins off both these businesses the value creation will be immense

hello Bhusbhac Sir, What is the missing piece that we retailers are not seeing.... all you have written is true and hence the upgrades by agencies but here we are and price is for all to see despite bonus announcements and hunch of many that demergers will start rolling in 2025... larger point, what are we missing.....

The market cap of RIL is Rs 18.5 lakh crores. Takeaway Rs 10 lakh crores valuation of Digital Services. Assets - Liabilities of JIO is Rs 3,50,000 crores plus as per segment performance data. That is not even 3x price to book for Digital Services. Bharti Airtel is 7.5x.

Starting with comparison in telcom sector Bhart Airtel Q1 net profit was Rs 4600 at price to book of 7.5x the market cap was Rs 10 lakh crores. Finance cost of Bharti Airtel is Rs 5600 crores whereas entire RIL interest cost is around Rs 5900 crores. RIL profit is expected to be Rs 6200 crores with falling interest costs as capex cycle is at an end. The current market cap of RIL has fallen to 18.5 lakh crores. The last company valuation of RETAIL was Rs 1350 per share which is nearly 50 percent of the share price. Both these companies appear to satisfy the entire share price value at current share price. This can tell you how undervalued RIL is. At PE multiples of 27.5x the stock would be overvalued on standalone basis of oil and gas, petrochemicals and O2C bower RETAIL and JIO which represent over 50 percent of EBIDTA the historical PE is no longer applicable The price to book of 2.5 x is the lowest of historical averages. FIIs have skewed all fundamentals as they made huge gains in options where retail has lost lakhs of crores of rupees. We have yet to factor in NEW ENERGY business which will start end of this year.