Brokerages optimistic about Reliance Industries valuations looks attractive; potential 36% increase in share prices

Brokerages have observed that the valuation of Reliance Industries shares is currently at its lowest point since the market shock caused by COVID-19 in March 2020

Reliance Industries – International brokerages Jefferies and Bernstein have reiterated their positive outlook on the chemicals-to-retail conglomerate, Reliance Industries Ltd.

The stock price of Reliance Industries has experienced a 22 percent decline from its 52-week high. Consequently, Jefferies has noted that RIL’s valuations are currently the most attractive they have been since the COVID-19 pandemic in March 2020. This presents a compelling buying opportunity as the risk-reward ratio becomes more favorable.

In the fiscal year 2026, Jefferies anticipates that Reliance Industries will experience a mid-teens growth recovery in the retail sector, with the possibility of the telecom arm Jio being listed. Additionally, Jefferies suggests that Reliance Industries may see an improvement in O2C profitability.

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All segments are expected to contribute to a 14 percent EBITDA growth in FY26. Jefferies has maintained its buy recommendation with a target price of Rs 1,690, indicating a potential upside of 36 percent.

Meanwhile, Bernstein has upheld its outperform rating on Reliance, setting a target price of Rs 1,520, suggesting a 25 percent increase from current levels. The brokerage foresees 2025 as a recovery period, with earnings growth being driven by the Telecom and Retail segments, as well as improving refining margins.

Bernstein predicts that Reliance Jio’s average revenue per user (ARPU) could increase by 12 percent, even without tariff adjustments, supported by a 4–5 percent rise in subscribers. The Retail segment is expected to achieve double-digit EBITDA growth, while gross refining margins (GRMs) are also likely to improve this year.

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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.