CITI has upgraded Reliance Industries to a ‘Buy’ rating, raising the target price to ₹1,530. The brokerage believes the recent underperformance of Reliance (20% lagging the broader Indian market over the last six months) presents a favorable risk-reward scenario for investors.
The report highlights an expected improvement in refining margins, driven by China’s reduced export competitiveness. Jio remains well-positioned to capitalize on potential tariff hikes, better data pricing, and the monetization of 5G services. However, softness in the retail segment may persist for a few quarters, leading to a marginal 1% cut in consolidated EBITDA estimates for FY25-27.
CITI’s upgrade reflects optimism about a recovery in core segments and long-term growth catalysts for the conglomerate.
