Citi Research became the latest brokerage to reaffirm a bullish outlook on Reliance Industries Ltd, with most brokers citing strong momentum in the conglomerate’s telecom and retail businesses as drivers that will fuel growth.
Citi maintained its ‘buy’ rating on RIL, raising its target price to Rs 1,690 per share, citing strong growth potential in Jio, driven by structural levers beyond the anticipated tariff hikes. The brokerage pencilled in a three-year consolidated EBITDA CAGR of 16 percent for Jio, assigning the business an enterprise value of $135 billion.
The broker noted that much of the market’s focus remains on the upcoming round of tariff hikes, but Citi said that there are several underappreciated growth drivers, ranging from subscriber upgrades and digital services expansion to operating efficiency. These will all fuel Jio’s long-term momentum, leading Citi to see a 6-7 percent growth from the non-tariff avenues.
Furthermore, there could be further upside for Jio from the revenue market share and improving margins. The Indian telecom sector, particularly Reliance Jio, is far from the saturation or low-growth phase seen in more developed markets.
Citi believes that Jio is well-positioned to take advantage of the sector’s evolving landscape, and its structural tailwinds offer a long runway for sustained performance.
At 9.20 a.m., shares of the firm were quoting Rs 1,466.5 on the NSE, up one percent.
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Earlier this month, Reliance Industries also received a vote of confidence from Bernstein and Goldman Sachs, with both reaffirming their bullish outlook on the firm.
Bernstein raised its target price for Reliance Industries shares to Rs 1,640 per share, indicating an upside potential of 15 percent from current levels. Further, the brokerage maintained its ‘outperform’ rating on RIL shares due to strong growth momentum.
Goldman Sachs added Reliance Industries to its APAC Conviction List, along with Taiwan-based TSMC and China’s Huaqin. The international brokerage believes that Reliance Industries’ EBITDA growth could rebound to 16 percent in FY26, compared to two percent in FY25.
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