Nomura has reiterated its Buy rating on Reliance Industries (RIL) and maintained a target price of ₹1,600, suggesting an 8% upside from the current market price of ₹1,476. Despite a softer-than-expected performance in its Oil-to-Chemicals (O2C) and Retail segments during the June quarter, the brokerage continues to see multiple growth catalysts for the conglomerate.
Nomura noted that the net profit was weighed down by a subdued showing in both O2C and Retail. However, net debt remained stable at ₹1,176 billion, and capital expenditure moderated to ₹299 billion, reflecting disciplined financial management.
The brokerage trimmed its FY27 EBITDA estimate by 3% and reduced its FY26 and FY27 PAT forecasts by 1% and 10% respectively. However, it emphasized that the medium-term outlook remains promising due to three key growth drivers:
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Scaling up of the New Energy business, which is expected to become a significant revenue stream in the coming years.
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Tariff hikes for Jio, which could directly boost the bottom line and improve profitability.
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Prospects of a Jio IPO or listing, although now pushed beyond 2025, are expected to unlock value and generate capital for future investments.
Nomura’s overall tone remains constructive, with RIL’s diversified portfolio and continued investments in energy transition, digital services, and consumer businesses seen as strong positives over the medium to long term.
Disclaimer: The brokerage view is based on publicly available research and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
