Citi has reiterated its buy rating on Reliance Industries Ltd (RIL) and increased its target price to ₹1,805 per share, citing a combination of improved valuation for Jio and the formal recognition of Reliance Consumer Products Ltd (RCPL) in its sum-of-the-parts (SOTP) framework. The brokerage said it has lifted Jio’s FY27 EV/EBITDA multiple in line with the recent upward revision it made for Bharti Airtel—from 13x to 14x—which results in an increase in Jio’s enterprise value estimate from US$135 billion to US$145 billion.
In addition to the telecom upgrade, Citi has now explicitly added ₹63 per share to RIL’s SOTP valuation to account for the company’s 84% stake in RCPL following its demerger from Reliance Retail Ventures. Citi said the inclusion better reflects RIL’s growing scale in FMCG and the optionality the business provides over the medium term as it expands its distribution footprint and product categories.
The brokerage highlighted that RIL remains its top pick in the India oil and gas coverage universe, supported by improving O2C fundamentals, a strong telecom outlook and ongoing value unlocking from consumer businesses. Citi believes the combination of telecom re-rating, retail monetisation and structural tailwinds in the energy vertical provide a favourable setup heading into FY26–27, especially as earnings volatility from refining and petchem stabilises.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
