Synopsis:
Reliance Industries Ltd and DLF Ltd are in focus after Jefferies has assigned a new target price with a Buy rating.
One of the leading brokerage firms, Jefferies, has given a new target price for two prominent stocks, based on its latest assessment of their financial performance, growth potential, and prevailing market trends.
1. DLF Ltd
Jefferies has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,000, with an upside of 32.11 percent from CMP of Rs. 756.95. Jefferies views DLF as a strong cash-flow generating company, supported by a high-quality land bank and excellent product delivery.
While near-term profits may remain flat, margins are improving, and underlying sales are expected to reflect in reported numbers by FY28. The firm maintains a Buy rating, noting the stock trades below its historical NAV, offering an attractive risk-reward.
About the Company
DLF Ltd, along with its subsidiaries and partners, is a real estate developer involved in land acquisition, project planning, construction, and marketing, while also providing leasing, power generation, maintenance, hospitality, and recreational services linked to its real estate operations.
With the market capitalization of Rs. 1,87,368.97 crore, the shares of DLF Ltd closed at Rs. 756.95 on Friday, down by 0.15 percent from its previous day’s close price of Rs. 758.10 per equity share.
In Q1 FY26, the company reported revenue of Rs. 2,717 cr, up 99.6 percent YoY from Rs. 1,362 cr in Q1 FY25, though down 13.2 percent QoQ from Rs. 3,128 cr in Q4 FY25. Profit rose to Rs. 763 cr, a 18.3 percent YoY increase over Rs. 645 cr in Q1 FY25, but fell 40.4 percent QoQ from Rs. 1,282 cr in Q4 FY25, reflecting strong annual growth tempered by sequential seasonal softness.
At the moment, the company’s P/E ratio is 43.8x higher as compared to its industry P/E 39.3x. The company’s ROE and ROCE are 11.4 percent and 6.51 percent respectively, and the D/E ratio of 0.10, indicates the company’s financial performance.
2. Reliance Industries Ltd
Jefferies has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,670, implying an upside of 21.39 percent from current market price of Rs. 1,375.70.
Jefferies expects RIL’s O2C segment profitability to remain strong, with the impact of Russian crude limited to 2.1 percent of consolidated FY27 EBITDA. While Jio’s upcoming IPO may trigger short-term tariff interventions, the company shows improving visibility for double-digit consolidated EBITDA growth in FY26.
About the Company
Reliance Industries Limited is an Indian conglomerate with operations in the energy, materials, retail, and digital sectors. Its main business segments are oil to chemicals (O2C), oil and gas, retail, and digital services. The O2C segment includes refining, petrochemicals, fuel and aviation retail, polymers, polyesters, and elastomers, all supported by strong manufacturing and supply-chain infrastructure.
The Oil and Gas segment is dedicated to the exploration, development, and production of crude oil and natural gas. The Retail segment provides consumer retail and related services, whereas the Digital Services segment provides a diverse set of digital solutions.
With the market capitalization of Rs. 18,61,662.26 crore, the shares of Reliance Industries Ltd closed at Rs. 1,373.50 on Friday, up by 1.21 percent from its previous day’s close price of Rs. 1,359.30 per equity share.
At the moment, the company’s P/E ratio is 24.6x higher as compared to its industry P/E 17.8x, and its ROE and ROCE are 8.40 percent and 9.69 percent respectively, and the D/E ratio of 0.44, indicates the company’s financial performance.
In Q1 FY26, the company reported revenue of Rs. 2,43,632 crore, up 5.1 percent YoY from Rs. 2,31,784 crore in Q1 FY25 but down 6.8 percent QoQ from Rs. 2,61,388 crore in Q4 FY25. Net profit rose sharply to Rs. 30,783 crore, up 76.5 percent YoY from Rs. 17,445 crore and 36.2 percent QoQ from Rs. 22,611 crore, reflecting strong operational performance and improved margins despite seasonal revenue fluctuations.
Written by Akshay Sanghavi
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