Robust O2C margin environment to drive near-term gains for Reliance

Footfall recovery pace, net subscriber count key to its consumer biz

A steady fourth quarter (Q4), a favourable outlook for Reliance Industries’ (RIL’s) key businesses, and growth triggers in the New Energy vertical are expected to keep the stock momentum and valuations of India’s most valuable company at elevated levels. The stock has been a stark outperformer, with gains of 29 per cent since August last year, compared with 4 per cent returns of the benchmark Sensex. 

The reason for the optimism is the expectation of a robust earnings growth.

Probal Sen and Sanjesh Jain of ICICI Securities expect the company to report annual earnings growth of 29 per cent over