The proposed listing of Jio Platforms could unlock value for Reliance Industries Ltd (RIL) and potentially drive a re-rating in the stock, according to Motilal Oswal Financial Services.
The brokerage said the conglomerate’s current market price factors in a sizable holding-company discount on its stake in the digital business.
Motilal Oswal said the potential equity valuation of around Rs 11 lakh crore for Jio Platforms is broadly in line with its own valuation of Rs 11.2 lakh crore. At that valuation, Jio Platforms would trade at around 12 times FY28 estimated EV/EBITDA.
The brokerage said RIL’s current stock price appears to factor in an 18-36 percent holding-company discount for its roughly 66.4 percent stake in Jio Platforms, depending on the valuation multiple assigned to Reliance Retail Ventures Ltd (RRVL). This provides headroom for potential value unlocking following Jio Platforms' listing.
Motilal Oswal's calculations show that if RRVL is valued at 20 times September 2028 estimated EV/EBITDA, RIL's current valuation implies a roughly 36 percent discount on its Jio Platforms stake. At a more conservative 15-times multiple for the retail business, the implied discount falls to around 18 percent.