Shares of Reliance Industries (RIL) rose by almost 3% in early deals on Monday, 22 June, looking set to snap their two-day losing run after several prominent brokerages retained their positive view about the stock, highlighting AI, FMCG, and New Energy will be the growth drivers of the company even as the company has started the prcocess to launch Jio Platforms IPO in the near future.
opened at ₹1,324.90 against its previous close of ₹1,309.35 and climbed 2.76% to an intraday high of ₹1,345.45.
The stock saw healthy buying interest after the oil-to-telecom conglomerate’s 49th (AGM) on 19 June revealed its ambitious plans for a turnaround in its oil-to-chemicals (O2C) business, rapid growth in its New Energy business, strong focus on AI-led growth, and the aim of becoming India’s largest FMCG company.
RIL Chairman Mukesh Ambani, in the AGM, shared the company’s five value creation pathways: (i) O2C reinvented into oil-to-chemicals-and-new materials, (ii) New Energy in accelerated commissioning, (iii) Reliance Intelligence as AI for every Indian, (iv) FMCG grown into India’s largest FMCG company, and (v) an exports target of $125-150 billion by 2032.
Meanwhile, filed its draft red herring prospectus (DRHP) with the market regulator SEBI on Friday, 19 June. Jio IPO could become India’s largest-ever public issue, with a size of around ₹37,700 crore.
Brokerages bullish on Reliance
According to brokerage firm Motilal Oswal Financial Services, AI, FMCG, and New Energy will be the key growth engines of Reliance.
The brokerage firm has a buy call on the stock with a target price of ₹1,655, implying a 26% upside potential.
Motilal expects Reliance Jio to remain the biggest growth driver (digital to contribute nearly 80% of RIL’s incremental EBITDA), with 18% EBITDA CAGR over FY26-28E, driven by the wireless tariff hike (nearly 15% in 2Q), market share gains in wireless, and the continued ramp-up of Homes and Enterprise offerings.
Further, Reliance Retail Ventures may deliver nearly 12% revenue CAGR over FY26-28E, driven by a mix of store rollouts, improved productivity, and scale-up of hyper-local offerings, said Motilal Oswal.
However, the faster ramp-up of lower-margin businesses could weigh on blended EBITDA margin, driving nearly 10% EBITDA CAGR over FY26-28E, the brokerage firm added.
For O2C, Motilal expects only a modest recovery over FY26-28.
Overall, Motilal Oswal expects a CAGR of nearly 9-10% in RIL’s consolidated EBITDA and PAT over FY26-28E.
Emkay Global Financial Services also retained a buy call on the stock with a target price of ₹1,680, highlighting the company aims to more than double consolidated EBITDA over the next five years.
Further, Emkay pointed out that Reliance Intelligence has entered the execution phase, while in the New Energy business, the PV segment is set for commercialisation and a meaningful contribution to RIL’s financial performance from FY27.
Another brokerage, Systematix Shares and Stocks, also has a buy call on Reliance shares with a target price of ₹1,700, as it believes the company is transforming from an energy-led conglomerate into a diversified platform powered by digital, retail, AI, and new energy.
Among the global brokerages, Jefferies believes Reliance shares can re-rate from the current levels after a recovery in its retail business.
As CNBC-TV18 reported, Jefferies has a buy recommendation on Reliance shares, with a price target of ₹1,675, implying an upside potential of 28% from current levels.
Nomura also has a buy call with a price target of ₹1,640, while CLSA maintained an “outperform” rating with a price target of ₹1,800, CNBC-TV18 reported.
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