BofA Securities bets on RIL's 'layer of commerce', maintains 'BUY'

RIL's approach of owning the "pipe" as well as the "services" offered on the pipe should help it keep the subscriber base captive, the brokerage says.

After building a "digital layer" (Jio Platforms) on top of the existing “physical layer” of retail shops across electronics, grocery, and apparels, Reliance Industries' (RIL) focus over the next four years would be to add a third “layer of commerce” and monetise the existing investments across different formats, wrote analysts at BofA Securities in a note dated September 7.

The note, co-authored by analysts Sachin Salgaonkar, Sukriti Bansal and Nafeesa Gupta, suggests that though there could be intermittent corrections in the stock in the near-term, the risk-reward is favorable from a 12-month perspective. Hence, it maintains a 'Buy' with the