Reliance Industries' (RIL) retail business is expected to grow three times in next the next three to five years at a robust CAGR of 35-40 per cent, said a Bernstein report.
Digital or new commerce continues to scale up and contributes 10 per cent of sales, it said.
It further said that, RIL's recently announced clean energy business may well be create a valuation of about $36 billion.
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It said clean energy has the potential to be value accretive if Reliance can pull it off.
"Most clean energy companies are trading on 2-3x P/S. Based on capex for clean energy, we see a route to Reliance building a clean energy business, which could be worth $36bn or Rs 395/sh," it said.
Reliance recently announced a plan to invest $10 billion in a new energy business over the next 3 years in the next stage in its transformation. Under plans announced, the company will invest $10 billion capex across solar, batteries and hydrogen to create an integrated clean energy ecosystem.
Other big announcements at the AGM were the launch of the new smartphone JioPhone Next and induction of Aramco chairman to the RIL Board, which is positive for the spin-off in O2C, the report noted.
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Further, it added that O2C margins continue to improve, raising hopes for the Aramco investment.
"For FY22, we expect Reliance will deliver O2C EBITDA of 522 billion (+90 per cent y-o-y). We remain otimistic that a deal will come together with Aramco albeit at a slightly lower valuation," it added.
