UBS has resumed coverage on Reliance Industries (RIL) with a buy rating and a target price of ₹1,750, highlighting the company’s transition into a new phase led by its digital and renewable energy businesses. The brokerage said that Jio and retail are entering a “harvesting” phase, with scale benefits and improved cash flows supporting the group’s next leg of growth.
It added that Reliance’s oil-to-chemicals (O2C) business remains an important earnings driver, but diversification into less cyclical segments such as digital and energy positions the company for more stable growth. UBS expects the new energy business to begin contributing to EBITDA from FY27, with Reliance targeting 10GW of solar photovoltaic capacity and 15GWh of battery storage by then.
UBS believes that the combination of stable O2C, maturing consumer businesses, and scaling clean energy platforms provides strong value unlocking potential, leaving room for re-rating in the stock. It said Reliance is building India’s digital and new energy future, making it one of the most compelling large-cap stories in the market.
Disclaimer: The views and recommendations made in this article are those of UBS. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
