Citi’s revised price target implies a potential upside of 21% from Friday’s closing levels. The index heavyweight had rallied 3.5% on Friday, contributing nearly 70 points to the gains of 550 points seen by the Nifty.
The brokerage wrote in its note that after a period of underperformance, the risk-reward for Reliance Industries has turned favourable. It must be noted that the stock had corrected over 20% from its recent peak before Friday’s rally.
Citi expects Reliance Industries’ refining margins to improve given China’s reduced export competitiveness.
With regards to Jio, Citi said that the telecom division remains well positioned to benefit from any future tariff hikes and also from any moves to improve data pricing and monetising 5G.
However, softness in the retail vertical may continue for another couple of quarters, according to Citi and as a result, this may lead to a 1% average cut to Reliance’s consolidated Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) cuts over financial year 2025 – 2027.
Out of the 38 analysts that have coverage on Reliance Industries 32 of them now have a “buy” rating on the stock, while three analysts each have a “hold” and “sell” recommendation respectively.
On November 13, CLSA too have projected a 30% upside for shares of Reliance Industries, citing multiple upcoming triggers in 2025. It also valued Reliance’s solar business at $30 billion and overall new energy business at $43 billion.
Shares of Reliance Industries ended 3.3% higher on Friday at ₹1,264. The stock is still down 2.4% on a year-to-date basis.
