Goldman Sachs forecasts bright prospects for Reliance Industries Limited despite stock rally – World News Network

Date:

Share post:

Mumbai (Maharashtra) [India], March 27 (ANI): Reliance Industries Limited (RIL), has made substantial investments totalling over USD 125 billion in capital expenditure (capex) over the past decade, predominantly in the hydrocarbon and telecom sectors, both of which typically entail longer gestation periods exceeding five years.
According to Goldman Sachs, Reliance Industries Limited (RIL) emerges as an attractive investment opportunity despite recent market rallies.
RIL has allocated substantial capital towards enhancing scale, integration, and cost competitiveness in its oil-to-chemical businesses, investing approximately USD 30 billion between FY13 and FY18.
Additionally, the conglomerate has poured USD 60 billion into developing 4G/5G capabilities, positioning itself as a high-growth player in the telecom sector.
Goldman Sachs expects RIL’s capital expenditure (capex) to peak at USD 17.6 billion in FY23, gradually easing to USD 11.2 billion by FY26, indicating a strategic approach towards optimizing investment efficiency.
RIL’s plans for expansion in the retail segment have not gone unnoticed.
With aggressive store expansions, the company has more than doubled its offline square footage area from 34 million square feet in FY21 to 73 million square feet in 3Q FY24, reflecting a concerted effort to capture a larger market share.
Goldman Sachs anticipates that returns from these new business ventures will contribute to the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) at an accelerated pace, outperforming market expectations.
Looking ahead, Goldman Sachs forecasts a sustainable EBITDA growth trajectory for RIL in the medium term, projecting a 17 per cent compound annual growth rate (CAGR) between FY24E and FY27E.
The Goldman Sachs report underscores the favourable risk/reward balance for long-term investors in RIL, citing the conglomerate’s robust investment strategies and growth prospects across key sectors.
This long-term investment horizon aligns well with Goldman Sachs’ assessment, suggesting that RIL’s strategic focus on these sectors positions it favourably for sustained growth.
One of the key drivers of RIL’s outperformance in the market, according to Goldman Sachs, lies in its ability to leverage expanding returns and valuation discovery through stake sales in newer ventures such as Jio and retail.
Despite the absence of significant contributions from these drivers over the past two years, rising returns from Jio and Reliance Retail are anticipated to bolster the company’s value proposition in the coming years.
RIL’s strategic shift towards investing more in retail and upstream new energy segments, which offer high return potential with lower capital intensity, is expected to drive further value creation.
Additionally, the bank predicts that EBITDA from the retail and telecom businesses is poised to double, underscoring the growth prospects inherent in RIL’s diversified portfolio.
The Goldman Sachs report reinforces investor confidence in RIL’s long-term vision and strategic initiatives, positioning the conglomerate as a compelling investment opportunity amid evolving market dynamics. (ANI)


Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News


Paris Appreciation Awards

Read More

World Polls

Read More

Short News

Read More

Indian Bureaucrats

Read More

World Talent Management

Read More

World Brand Ambassadors

Read More

Film Critics

Read More

Influencers

Read More

Video Press Release

Read More

podcasts Press Release

Read More

Social Media

Read More

Colleges Press Release

Read More

Business Press Release

Read More

Critics Press Release

Read More

Fashion Marketing Press Releases

Read More

Gaming Press Release

Read More

Finance Press Release Distribution

Read More

Creative Press Release

Read More

Animals Press Release

Read More

Tech News Press Release

Read More

Cryptomarket Press Release

Read More

Fitness News Press Release

Read More

Gadgets Press Release

Read More

Gardening Press Release

Read More

Stockmarket Press Release

Read More

Product Reviewers and Marketing

Read More

Crypto Press Release Distribution

Read More

Film Festivals Marketing

Read More

India Real Estate Marketing

Read More

Indian Medical Tourism

Read More

Travel Marketing Press Release

Read More

Health Marketing Press Release

Read More

Events Marketing Press Release

Read More

Restaurants Marketing Press Release

Read More

City Business Listing

Read More

World Import Export

Read More

PR Franchise

Read More

Radio Press Release Distribution

Read More

Movies Distribution

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

India’s travel and tourism sector poised for growth: Projected revenue to reach USD 23.72 bn by 2024 – World News Network

As per Invest India, India announced 100 per cent Foreign Direct Investment (FDI) in tourism-related ventures, including the development of hotels, resorts, and recreational facilities, in a move aimed at fostering growth and development in the tourism sector as of 2023.

Aranthangi’s Elshaddai School Students Achieve Record-breaking Feats and Set Elite World Records – World News Network

Chennai (Tamil Nadu) [India], April 15: Elshaddai Group of Institutions, Aranthangi, proudly presents the Elshaddai World Records Festival 2024, celebrating 4th year of academic excellence. Students showcased exceptional skills, recognized by prestigious record-keeping organizations which includes Elite World Records, Asian Records Academy, India Records Academy, and Tamilan Book of Record, providing inspiration for aspiring achievers. These achievements underscore the school's commitment to nurturing talent and fostering a culture of innovation and excellence.

India’s passenger EV market will hot up in next 3-4 years – World News Network

This EV surge in EV sales can be can be attributed to factors like, government incentive schemes like PLIs, infrastructure development like more EV charging points, increasing urban consumer interest, and government push to meet green target.

Election months typically see less capex utilisation: Bank of Baroda report – World News Network

A capital expenditure, or capex, is used to set up long-term physical or fixed assets.

Paris Appreciation Awards

Read More

World Polls

Read More

Short News

Read More

Indian Bureaucrats

Read More

World Talent Management

Read More

World Brand Ambassadors

Read More

Film Critics

Read More

Influencers

Read More

Video Press Release

Read More

podcasts Press Release

Read More

Social Media

Read More

Colleges Press Release

Read More

Business Press Release

Read More

Critics Press Release

Read More

Fashion Marketing Press Releases

Read More

Gaming Press Release

Read More

Finance Press Release Distribution

Read More

Creative Press Release

Read More

Animals Press Release

Read More

Tech News Press Release

Read More

Cryptomarket Press Release

Read More

Fitness News Press Release

Read More

Gadgets Press Release

Read More

Gardening Press Release

Read More

Stockmarket Press Release

Read More

Product Reviewers and Marketing

Read More

Crypto Press Release Distribution

Read More

Film Festivals Marketing

Read More

India Real Estate Marketing

Read More

Indian Medical Tourism

Read More

Travel Marketing Press Release

Read More

Health Marketing Press Release

Read More

Events Marketing Press Release

Read More

Restaurants Marketing Press Release

Read More

City Business Listing

Read More

World Import Export

Read More

PR Franchise

Read More

Radio Press Release Distribution

Read More

Movies Distribution

Read More