InvestorQ : Is it true that the composition of Reliance market value has changed in the recent past?
Rashi Mehra made post

Is it true that the composition of Reliance market value has changed in the recent past?

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Archita Jajjoo answered.
5 months ago
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RIL announced stellar quarter results for the Dec-20 quarter with 25% growth in digital business EBITDA. But the real story was about the Digital business has come to play a key role in the valuation of Reliance. EBITDA of digital business stood at Rs.8,942 crore, or 30% of the total EBITDA of RIL. That is why digital is driving valuations. Let us see how!

Mr. Mukesh Ambani has been talking about data as the new oil for the last few AGMs. That shift to digital is visible in the latest valuation sweepstakes. If you consider stakes placed by RIL with PE funds last year, it pegs the valuation of the retail and digital at around $130 billion. The balance $70 billion is from refining, extraction, marketing and others.

Digital already constitutes 35% of market value and retail is also likely to be largely digitally driven and we are not even counting the value of the digital ecosystem that gets created. Even as the oil and chemicals business becomes green, the digital footprint will only become larger. The next few quarters will be interesting if oil remains low and digital the driver.

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