Macquarie has upgraded Reliance Industries (RIL) to ‘outperform’, setting a target price of ₹1,500, implying a 23.8% upside from the current market price (CMP) of ₹1,211.50.
The brokerage noted that RIL’s stock has underperformed MSCI India by 18 percentage points and Bharti Airtel by 60 percentage points over the past year. However, Macquarie now sees incremental positives over the next 6-12 months, leading to the upgrade.
Looking ahead, Macquarie expects RIL’s EPS CAGR to improve from just 2% in FY23-25 to 15-16% in FY25-27.
Key catalysts driving this outlook include:
- Better earnings momentum in the coming quarters.
- Potential listing of Jio, with newsflow likely around the AGM.
- Gradual commissioning of new energy capacities, strengthening its renewable energy business.
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