Top News

Nuvama has set the highest target price of Rs 1801 for Reliance Industries (RIL) also claims that solar module production can trigger a re-rating similar to the increase experienced after Reliance Jio’s 2017 launch. RIL had announced its first 1 GW HJT module facility which can be scaled to 10 GW by early CY26. The broker also claimed that the production of solar modules can give a re-rating which can match the period after launch of Jio in 2017 reported by Economic Times. At its recent analyst meet RIL announced the start of its first line of HJT module manufacturing facilities. Nuvama has checked with industry participants and revealed that RIL has offered to sell its HJT modules in the lucrative domestic market. “RIL’s modules business (20 GW capacity) yields an EV of $20 billion which could trigger a valuation re-rating for RIL similar to the trend seen post-RJIO’s launch in 2017. RIL’s New Energy rollout will not only add over 50% to PAT but also re-rate valuations including the the O2C business given its net-zero carbon target by 2035” Nuvama analysts Jal Irani and others said in a note as reported by ET. Reliance Industries Share Price Target “Accordingly watch out for the upcoming AGM in August/September. We are raising the SOTP-based target price to Rs 1801 the highest on the Street to factor in the potential for higher-than-expected module profits; we reiterate our ‘BUY’ rating” Nuvama said. Nuvama Projection On New Energy Sector Brokerage has made some predictions on PAT from the New Energy segment (modules plus power) rising from Rs 20 billion in FY27E to Rs 114 billion by FY30E implying a 140% CAGR over FY26–30E. “On our conservative assumptions the New Energy share in PAT is expected to rise to 9% by FY30E. A faster ramp-up in capacity additions and utilisation could fuel more potential upside than our current numbers indicate. We believe additional businesses in the New Energy segment will also start contributing in a phased manner. This should enable RIL to meet its target of increasing PAT contribution from the New Energy segment to over 50% by 2030 as announced during the AGM in 2024” it said.