With a potential for a 10x growth in pre-tax profit from the business over the next decade, retail, including e-commerce, will be the next growth engine for Reliance Industries Ltd. (RIL), Goldman Sachs said.
After growing 5x over FY16-FY20, it’s core retail revenue growth took a pause in FY21 due to COVID-related macro headwinds.
The conglomerate run by billionaire Mukesh Ambani used the period to build strong digital capabilities of the retail business while continuing to expand its physical reach, it said.
“We believe retail business (including e-com) is set to be the next growth engine for RIL, with potential for retail EBITDA to grow 10x over the next 10 years,” the brokerage said.
