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Mukesh Ambani

Domestic brokerage firm Nuwama has placed a big bet on Mukesh Ambani's Reliance Industries (RIL) share price. Nuwama has increased the target price of RIL to Rs 1801, which is the highest target in street. The reason behind this is the company's solar module business, which Nuwama is considering as a game-changer. Brokerage believes that the valuation re-removing after the launch of Reliance Jio in 2017, the same trend can be seen with solar business.

In the recent analyst meat, RIL announced to start its first 1 GW HJT module manufacturing facility, which will be scaled up to 10 GW by the beginning of 2026. U Brokerage estimates that RIL's 20 GW Solar Module Business can create a $ 20 billion EV (enterprise value).

Nuwama's analyst Jal Irani and his team say that RIL's new energy rollout will not only increase the company's PAT by more than 50%, but will also re-recite the valuation of the O2C business, as the company is working on net-gyro carbon target by 2035. The O2C segment is currently the largest profit source of RIL, which gives two-fiveth part of Ebitda and more than half of PAT.

Nuwama has retained the 'BUY' rating

RIL's new energy plans include 30 GWH battery facility, green hydrogen and electrolyzer manufacturing, and 55 CBG plants. Nuwama said in his note that keep an eye on the AGM of RIL to be held in August and September, where new updates can be found. Brokerage has estimated a PAT of Rs 20 billion from the new energy segment in FY27E, which can reach 114 billion rupees by FY30E, ie 140% CAGR. Nuwama compared companies such as Wari Energy and Premier Energy, whose EV is 10 billion and 6 billion dollars. RIL's 20 GW Solar Business 15X EV, Ebitda can give a valuation of $ 20 billion on multiple. Nuwama has retained the 'Buy' rating and said that in the new energy business, a sharp ramp-up can give more upside.