Brokerage firm CLSA believes that Reliance Industries can take Reliance Retail and / or Reliance Jio public over the next 12-18 months.
CLSA has reiterated its buy rating on Reliance Industries with a price target of Rs 2,970. The price target implies a potential upside of 15 percent from current levels. The firm said that the stock is nearing the end of its consolidation phase and the events in the second half of the current financial year may set the stock on its next leap.
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The events for the second half include a ramp up of its FMCG business, launch of airfiber for wireless broadband among others.
The brokerage expects a 75 percent jump in the operating profit or EBITDA of the retail segment. The omni channel offerings of Reliance Retail are another positive for the behemoth.CLSA also believes that the new 5G smartphones will monetise Jio’s pan-India standalone 5G network by the end of 2023. Reliance Jio launched 5G services in another 10 cities across India on Monday.
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Reliance Jio reported a nearly 27 percent increase in profit to Rs 4,729 crore for the September quarter compared to the year-ago period.
Reliance Retail posted a 44.5 percent year-on-year growth in revenue to Rs 57,694 crore for the September quarter while profit surged by 36 percent to Rs 2,305 crore over the year ago period.
Shares of Reliance Industries are trading 1.4 percent lower at Rs 2,559.60.
