International brokerages Jefferies and Bernstein reiterated their bullishness on chemicals-to-retail conglomerate Reliance Industries Ltd.
Reliance Industries' stock price has seen a 22 percent correction from its 52-week high. As a result, RIL's valuations have become the cheapest since the COVID-19 shock seen in March 2020, said Jefferies, making for a great buying opportunity as the risk-reward ratio turns attractive.
In FY26, Jefferies expects Reliance Industries to see mid-teens growth restoration in the retail segment, with the brokerage pencilling in a likely listing of telecom arm Jio. Further, according to Jefferies, Reliance Industries might see O2C profitability improve.
Follow our market blog to catch more
All segments will likely contribute to a 14 percent EBITDA growth in FY26. Jefferies maintained its 'buy' call, with a target price of Rs 1,690, indicating an upside of 36 percent.
Bernstein, meanwhile, maintained its 'outperform' rating on Reliance, setting a target price of Rs 1,520, implying a 25 percent rally from current levels. The brokerage expects 2025 to mark a recovery cycle, with earnings growth driven by the Telecom and Retail segments, alongside improving refining margins.
According to Bernstein, Reliance Jio’s average revenue per user (ARPU) could rise 12 percent, even without tariff hikes, supported by a 4–5 percent increase in subscribers. The Retail segment is expected to deliver double-digit EBITDA growth, while gross refining margins (GRMs) will also likely improve this year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
