Nomura has maintained its Buy rating on Reliance Industries Limited (RIL), setting a target price of Rs 3,450, indicating a potential upside of 26% from the current market price of Rs 2,745.50. The brokerage reported that RIL’s Q2 performance came in below estimates due to a challenging environment, but the company’s long-term outlook remains positive.
Nomura highlighted that reported net debt moderated to INR 1.12 trillion, while capex increased to INR 288 billion. The brokerage has cut its FY25-27 EBITDA estimates by 5-6%. However, the longer-term outlook remains constructive, supported by key factors such as upcoming tariff hikes for Jio, value unlocking for Jio, and sustained growth in the retail segment.
Additionally, the commencement of new energy operations by March 2025 is expected to be a key trigger for growth in the coming months.
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