DAM Capital has initiated a buy rating on Reliance Industries, with a target price of Rs 3,042, implying an upside of around 12% from the current market price of Rs 2,709.40. The brokerage sees significant growth potential in the company’s new energy ventures, which are expected to become a major pillar of growth.
While acknowledging short-term challenges in the retail and oil-to-chemicals (O2C) businesses, DAM Capital expects all of Reliance’s business segments to grow over the next few years. The company is projected to achieve an EBITDA growth of 13% per annum over FY25-27.
Additionally, DAM Capital forecasts that benchmark Singapore GRMs (gross refining margins) will rise from $3 per barrel to $5-6 per barrel over the next year, providing a boost to Reliance’s refining margins.
Key observations include:
- Rationalisation in the retail segment is expected to conclude, with demand set to pick up during the festive season.
- Jio continues to maintain strong performance across all key metrics.
- New Energy capex is expected to start delivering results from next year.
Disclaimer: This article is for informational purposes only and does not provide investment advice. Investors should consult with a financial advisor before making any investment decisions. Neither the publication nor the author holds any responsibility for investment outcomes based on the information provided.
