Reliance Industries to see valuation re-rating led by New Energy business, says Nuvama Equities; raises target price

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₹3,105 per share by rolling forward RIL’s New Energy valuation to FY26E sales. It has a ‘Buy’ rating on the RIL shares. Reliance Industries has strategically invested in ten global technology innovators across New Energy verticals.

These companies come with strong expertise that is likely to assist RIL accomplish its New Energy vision. The company aims to be one of the world’s leading New Energy and new materials company as part of its 15-year vision, as per Nuvama Institutional Equities. Also Read: RIL Q3 Result Preview: Digital, retail business to drive profit, revenue; O2C business may remain under pressure The brokerage firm highlighted that RIL is smartly inching closer to its New Energy vision, bagging several PLIs on the way.

It won PLIs under both rounds of solar modules. RIL (apart from Greenko) is the only company to win incentives for both G H2 and Electrolysers concluded recently. It won incentives of $0.3/kg for electrolyser capacity of 300MW (25% of allotted capacities) and $0.23 for G H2 capacity of 90,000MT (22% of allotted capacities).

Besides, it has won PLI under ACC battery storage for 5GW capacity. Moreover, RIL has put out a schema of its upcoming Dhirubhai Ambani Green Energy Giga Complex in Jamnagar spread over 5,000 acres. This is targeted to start operations by H2CY24 as mentioned by its Chairman Mukesh Ambani at the recently concluded Gujarat Vibrant summit, the brokerage noted.