RelianceIndustries' (RIL) retail business is expected to grow three times in next thenext three to five years at a robust CAGR of 35-40 per cent, said a Bernsteinreport.
Digitalor new commerce continues to scale up and contributes 10 per cent of sales, itsaid.
Itfurther said that, RIL's recently announced clean energy business may well becreate a valuation of about $36 billion.
Itsaid clean energy has the potential to be value accretive if Reliance can pullit off.
"Mostclean energy companies are trading on 2-3x P/S. Based on capex for cleanenergy, we see a route to Reliance building a clean energy business, whichcould be worth $36bn or Rs 395/sh," it said.
Reliancerecently announced a plan to invest $10 billion in a new energy business overthe next 3 years in the next stage in its transformation. Under plansannounced, the company will invest $10 billion capex across solar, batteriesand hydrogen to create an integrated clean energy ecosystem.
Otherbig announcements at the AGM were the launch of the new smartphone JioPhoneNext and induction of Aramco chairman to the RIL Board, which is positive forthe spin-off in O2C, the report noted.
Further,it added that O2C margins continue to improve, raising hopes for the Aramcoinvestment.
"ForFY22, we expect Reliance will deliver O2C EBITDA of 522 billion (+90 per centy-o-y). We remain otimistic that a deal will come together with Aramco albeitat a slightly lower valuation," it added.