According to UBS, Reliance Industries is building India’s digital and new energy future.
The brokerage said that Jio and Retail are entering a “harvesting phase”, while the diversified Oil-to-Chemicals (O2C) business reduces cyclicality as new energy scales up in the coming years.UBS expects the new energy segment to start contributing to EBITDA from FY27.
Last week, CLSA maintained an ‘Outperform’ rating on RIL and a price target of ₹1,650.The foreign brokerage said that RIL’s AI initiatives through Jio, the expansion of its media and consumer businesses, and the integration of new energy value chains were highlighted in the company’s annual report as key long-term growth drivers.
Looking ahead, CLSA said it will closely monitor potential announcements at next week’s Annual General Meeting (AGM) on August 29, particularly any updates on a possible Jio IPO, greater clarity on AI-related plans, and progress on FMCG expansion.
Similarly, JPMorgan also reiterated its ‘Overweight’ rating on the stock last week. The brokerage has a price target of ₹1,695 on the counter.
JPMorgan believes RIL’s relative valuations continue to look reasonable despite its year-to-date outperformance. It added that stronger O2C margins, potential tariff hikes, and improved retail growth could act as key positives for the company.
Among the 37 analysts covering Reliance Industries, 34 have a ‘Buy’ recommendation and one has a ‘Hold’.
Shares of Reliance Industries Ltd. ended 0.32% higher on Monday at ₹1,413.70 and are up 16% so far this year.
