Nuvama has reiterated its Buy rating on Reliance Industries (RIL) and set a target price of ₹1,767, implying a 20% upside from the current market price of ₹1,476. The brokerage considers RIL’s New Energy (NE) business as the company’s largest multidecadal growth driver, with significant developments expected in the next four to six quarters.
RIL reported a Q1 EBITDA of ₹429 billion, up 11% year-on-year, though below estimates due to weaker-than-expected growth in retail (+13%) and O2C (+11%) segments. However, profit after tax exceeded expectations due to a one-time gain.
Nuvama outlined several long-term positives in the company’s growth strategy:
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A fully integrated 10GW polysilicon-to-module facility is expected by end-FY26, potentially adding 6% to consolidated PAT.
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The company is working on next-generation solar technologies, including perovskite cells with over 30% efficiency.
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Green hydrogen (GH2) production is on track to begin before the FY27 PLI deadline.
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Captive power costs are projected to fall by 25%, which could conservatively add another 6% to PAT.
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The petrochemical (petchem) expansion remains on track for FY27, supported by a 50% rise in US ethane imports, which is expected to enhance margins.
Nuvama believes these investments not only reflect a strong self-funded new energy platform but also strengthen RIL’s ability to deliver long-term shareholder value across segments.
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.
