Jefferies has reiterated a Buy rating on Reliance Industries, raising optimism for the conglomerate’s refining, telecom, and retail businesses. The firm forecasts an improvement in Singapore Gross Refining Margins (GRM) in CY25, supported by favorable demand-supply dynamics and around 1 million barrels per day (mbpd) of announced global refinery closures, which are expected to boost Reliance’s O2C (Oil-to-Chemical) profitability.
Jio’s strong growth in home broadband subscriber additions, alongside its leadership in 5G, positions the telecom arm for further monetization opportunities, with the possibility of a public listing in CY25. While the retail division saw a robust performance in October, Jefferies cautions that a sustained recovery might take up to two quarters.
The brokerage believes the current valuation imputing $57 billion for the retail business is overly conservative. It expects a rebound across all segments, especially with the company’s diverse growth avenues and refining tailwinds in the coming quarters.
