Reliance Retail’s valuation exceeds $100 billion.

Reliance Retail has soared past the combined sales of India’s top seven consumer giants, including ITC, HUL, D’Mart, Nestle, Britannia, Tata Consumer, and Godrej Consumer, with its FY24 sales reaching Rs 3 lakh crore. Its sales dwarf even the most valuable listed retail company, Avenue Supermarts, which recorded sales of Rs 56,983 crore for the nine months ending December 2023.

Analysts estimate Reliance Retail’s value to be over $100 billion, surpassing FMCG titans like ITC and HUL. ICICI Securities values it at Rs 9 trillion ($108 billion), considering three times its FY24 sales. Motilal Oswal values its core business at 40x EV/EBITDA on FY26E and the connectivity business at 5x, arriving at a valuation of Rs 1,812 per share. Global brokerage firms like JPMorgan, UBS, and Bernstein have also pegged its enterprise value (EV) at around $110 billion.

Reliance Retail’s diverse retail formats, expansive presence across categories, and aggressive digital platform rollout contribute to its unmatched scale. While comparisons with listed consumer companies or D-Mart may not fully capture its business dimensions, Reliance Retail’s exponential growth, especially in smaller towns, sets it apart. With over 18,000 stores nationwide, it outstrips competitors like D-Mart, which focuses on profitability through cluster-based expansion.

Reliance Retail’s conglomerate structure spans value, mid, and luxury retail across various product categories, offering significant efficiencies and a sizable customer base. Its strong presence in online and e-commerce channels positions it as a retail aggregator, poised for higher growth and eventual profitability compared to brick-and-mortar-focused peers.