Reliance Industries – Broad-Based Earnings Strength; Free Cash Flow Remains Negative: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The FY23 annual report of Reliance Industries Ltd. throws up some interesting data points:Capex of Rs 1.4 trillion had grown by a material Rs 423 billion in FY23, resultant, net debt (including spectrum and other deferred payment liabilities) expanded sharply to Rs 1.05 trillion, despite a material Rs 428 billion of increase in cash plus equivalents for the year,net working capital (excluding cash) increased by Rs 220 billion, driven by a sharp uptick in inventories,free cash flow generation remains elusive, despite sharply higher profitability – FCF yield of negative 1.2% versus an average negative yield of 3.6% over FY21-22. Overall, earnings prospects remain strong for RIL, but we have revised down FY24/25E earnings per share by 2% each, target price reduced by 1% to Rs 2,650/share (from Rs 2,670/share). Maintain 'Add' rating..Click on the attachment to read the full report:.Jio Financial Services Hits 5% Lower Circuit For Third Day; Investors Lose Rs 23,000 Crore.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Reliance Industries – Broad-Based Earnings Strength; Free Cash Flow Remains Negative: ICICI Securities

Capex intensity remains material.

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