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RS: Ongoing Share Repurchases Will Support Stronger Future Shareholder Returns

Share Repurchase Activity Will Influence Revenue and Margin Performance Ahead

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RS
AnalystConsensusTarget
Not Invested
Published 21 Aug 2024

Update shared on 07 Dec 2025

Fair value Decreased 1.16%
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Analysts have modestly lowered their fair value estimate for Reliance from ₹323.13 to ₹319.38, citing a slightly higher discount rate and a softer profit margin outlook, partly offset by expectations of marginally stronger revenue growth and a small improvement in future valuation multiples.

What's in the News

  • Continued share buyback progress, with Reliance repurchasing 211,873 shares, or about 0.4% of its outstanding equity, between July 1 and September 30, 2025 (company filing)
  • Total cumulative buyback under the program first announced on December 1, 1994 has reached 45,627,366 shares, amounting to $4,501.5 million (company filing)
  • The latest tranche cost $60.9 million, underscoring ongoing capital return to shareholders alongside long running buyback activity (company filing)

Valuation Changes

  • The fair value estimate has edged down slightly from ₹323.13 to ₹319.38 per share.
  • The discount rate has risen slightly from 8.26% to about 8.37%, implying a marginally higher required return.
  • Revenue growth has increased modestly from approximately 3.62% to 3.74%, reflecting a slightly stronger top line outlook.
  • The net profit margin has softened slightly from about 6.40% to 6.29%, indicating a minor compression in profitability expectations.
  • The future P/E multiple has inched up from roughly 20.69x to 20.78x, suggesting a small improvement in anticipated valuation levels.

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Disclaimer

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