What is the impact you see of the New Energy business on the valuation of the Reliance group as a whole?

With Mukesh Ambani committing Rs.75,000 crore investment to green energy initiatives at its 43rd AGM, Bernstein has projected the New Energy business to be worth nearly $36 billion. That is roughly equivalent to Rs.260,000 crore. New Energy will now be the fourth major vertical of Reliance; apart from O2C, Digital and Retail.

Bernstein expects the New Energy business to add $36 billion to the market cap of RIL as it will also add to the overall valuation of RIL, leading to re-rating. This will certainly enhance the total valuation of all Reliance business lines put together to $261 billion, leaving room for substantial price upside on the stock.