Reliance Industries (RIL) shares surged 2% after Kotak Institutional Equities upgraded the stock to ‘Buy’ with a target price of ₹1,400. Kotak cited an attractive risk-reward after a 22% decline over the past year, despite a minor earnings revision due to weak retail performance and refining margins.
Key Growth Triggers:
- Retail Recovery: The downturn in Reliance Retail is nearing its end, with store rationalization expected to conclude soon. A return to 15% growth in FY26 is anticipated.
- Jio IPO & Tariff Hikes: The upcoming public listing of Jio and potential telecom tariff hikes could significantly boost revenue.
- O2C Margin Expansion: Gradual improvement in the oil-to-chemicals (O2C) business is expected to support earnings.
Jefferies also reaffirmed its ‘Buy’ rating with a higher target of ₹1,600, stating that the market is overly pessimistic about RIL’s retail segment. The firm highlights that Reliance Retail’s market valuation remains far below its last funding round, suggesting strong upside potential.
Reliance shares opened at ₹1,197, reaching a high of ₹1,198 and a low of ₹1,191.35. The stock remains volatile, with a 52-week high of ₹1,608.80 and a low of ₹1,156.
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