DAM Capital reiterated its ‘Buy’ rating on Reliance Industries Ltd (RIL), increasing the target price to ₹1,550 from ₹1,521, reflecting a 21.6% potential upside from the current market price of ₹1,275.00. The brokerage noted a decent recovery in RIL’s performance after a challenging H1FY25, driven by strong recovery in the retail segment following recalibration of stores.
The oil-to-chemicals (O2C) business continues to perform steadily despite a challenging environment. Reliance Jio also demonstrated consistent growth in both tariffs and subscriber base. DAM Capital forecasts a robust FY25-27 EBITDA growth of ~12%, with RIL currently trading at a forward multiple of ~10x EV/EBITDA, below the historical average of ~12x.
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