CLSA has reiterated its outperform rating on Reliance while raising its target price to ₹1,800 per share, citing improving visibility on monetisation catalysts, particularly the potential listing of Jio by mid-2026.
The brokerage highlighted that a Jio IPO could emerge as the most significant event for Reliance in 2026, providing a clear valuation benchmark for the telecom business. CLSA prefers free cash flow yield as the most appropriate metric to compare Jio with global telecom peers and values the business at an enterprise value of US$161 billion by March 2027 and US$190 billion by March 2028, reflecting a 15% premium to global peers.
At the same time, CLSA has turned more conservative on other segments. It has reduced valuation multiples for the new energy business and lowered its implied valuation for retail to around 10% below the equity value implied by the stake sale completed over two years ago, reflecting execution and margin normalisation risks.
Despite these adjustments, CLSA believes Reliance continues to offer meaningful option value from emerging growth engines such as quick commerce, FMCG and media, which are not fully reflected in current valuations. The brokerage believes recent stock performance provides an attractive entry point ahead of medium-term catalysts.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
