The shares of the Large-Cap company, specializing in energy, petrochemicals, retail, digital services (Jio), new energy, and media & entertainment, are in focus after Global brokerage Firms initiated a Buy Target with an upside potential of upto 18 percent.
With a market capitalization of 19,54,765.67 Crores on Monday, the shares of Reliance Industries Ltd declined upto 2.7 percent, making a low of Rs. 1436.85 compared to its previous close of Rs. 1476.85.
Reliance Industries Ltd, engaged in energy, petrochemicals, retail, digital services (Jio), new energy, and media & entertainment, is in focus after a leading Global brokerage firms has initiated a Buy Target of upto Rs. 1,695 on it with an upto 18 percent Upside Potential from day’s low.
Here’s a list of global brokerage firms along with their respective target
JP Morgan
The leading Global brokerage firm, JP Morgan, has revised the Buy Target to Rs 1,695 from Rs 1,568 on it with an upto 18 percent Upside Potential from the day’s low.
The reasons for the “Buy” target
- Better Telecom Margins: Telecom margins showed improvement, which is a positive indicator for the company’s future profitability in this sector.
- Progress in New Energy: New Energy initiatives are showing progress, positioning Reliance for long-term growth in this emerging sector.
- Retail Growth Slowed: Retail growth decelerated to 11% YoY, missing market estimates, suggesting some slowdown in the retail segment.
- Weak O2C EBITDA: The O2C (Oil to Chemicals) EBITDA was weaker than expected, impacting the overall performance in that segment.
- Improved Profit Growth in FY26 & FY27: Despite short-term challenges, Reliance is positioned for improved profit growth in FY26 and FY27, driven by telecom, new energy, and retail recovery.
Morgan Stanley
The leading Global brokerage firm, Morgan Stanley, initiated a Buy Target of Rs. 1,617 on it with an upto 12 percent Upside Potential from the day’s low.
The reasons for the “Buy” target:
- Management’s Optimistic Outlook: Management plans to double earnings by 2029, signaling long-term growth potential.
- Growth Areas: Focus on new energy, telecom, and a strong balance sheet, which are expected to drive future growth.
- Tough Quarter: The company’s earnings missed expectations, especially in retail revenue and fuel refining.
- ‘Overweight’ Rating: Despite short-term challenges, Morgan Stanley believes the stock will outperform the market.
HSBC
The leading Global brokerage firm, HSBC, initiated a Buy Target of Rs. 1,630 on it with an upto 13 percent Upside Potential from the day’s low.
The reasons for the “Buy” target:
- Earnings Boosted by One-Time Sale of Shares: Reliance’s earnings saw a boost from a one-time sale of shares, which helped offset operational challenges.
- Operational Weakness in O2C & Retail: Operational performance in O2C (Oil to Chemicals) and retail segments was a bit below expectations, reflecting softer growth in these areas.
- UBR-Led Air Fibre Picking Up: The company’s UBR-led air fibre business is gaining traction, while retail is nearing the final stages of its turnaround, suggesting improvements ahead.
- New Energy Launch Preparations: Reliance is actively gearing up to launch new energy initiatives, which could drive growth in the future as the sector matures.
Financials & Others
The company’s revenue rose by 9.7 percent from Rs. 2,35,767 crores to Rs. 2,58,751 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 15,138 crores to Rs. 26,994 crores in the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
