Jefferies has reiterated a ‘Buy’ rating on Reliance Industries Limited (RIL) with a target price of ₹1,690/share, indicating a potential upside of 36.3% from the current market price (CMP) of ₹1,239.95.
Key Highlights:
- Retail Growth:
- Mid-teens growth in the retail segment is expected to be restored by FY26, addressing concerns over medium-term prospects.
- Jio Listing:
- A potential listing of Jio Platforms could unlock significant value, boosting investor confidence.
- O2C Segment:
- Improvement in Oil-to-Chemicals (O2C) profitability is anticipated to contribute to overall earnings growth in FY26.
- Earnings Outlook:
- Jefferies projects a 14% EBITDA growth in FY26, with contributions across all segments, including telecom, retail, and O2C.
- Valuation:
- RIL’s valuation is at its cheapest level since the Covid-19 shock in March 2020, making it an attractive investment opportunity.
Outlook:
Jefferies believes that RIL’s underperformance in CY24, driven by concerns around retail and earnings growth, presents a buying opportunity. With strong growth prospects in FY26, a Jio listing, and improved profitability across segments, the brokerage sees significant upside potential.
Disclaimer: The above analysis is based on provided data and is for informational purposes only. It does not constitute financial advice. Readers should consult their financial advisors before making investment decisions.
