Reliance Industries Price Target: Mukesh Ambani-led Reliance Industries Limited has recently been in focus due to two key developments. First, the company’s strategic engagement involving a deal with Meta Platforms has attracted strong market attention. Second, the stock has witnessed a notable correction in recent months amid weak broader market sentiment.
The brokerage expects the stock to reach Rs 1,586 by September 2027, implying an upside potential of about 25.6 per cent. According to the report, the recent decline may present a favourable entry opportunity for long-term investors.
Oil-to-Chemicals (O2C) Segment
The O2C segment is currently seen near cyclical trough levels, with expectations of an earnings recovery ahead. Refining and petrochemical profitability are projected to improve due to better industry spreads.
O2C EBITDA is estimated to rise from Rs 605 billion to Rs 688 billion by FY28.
Telecom: Reliance Jio
Reliance Industries Limited telecom arm, Jio Platforms (Reliance Jio Infocomm), continues to be the group’s strongest earnings driver, supported by steady monetisation potential.
The subscriber base has reached 524 million. The brokerage expects further tariff-led ARPU growth over the next few quarters.
Retail Business
The retail segment continues to show resilient growth with improving profitability trends. EBITDA margins are expected to gradually improve, supported by operating efficiencies.
Together, telecom and retail contribute over 65 per cent of valuation, and both are expected to drive the majority of earnings growth going forward.
New Energy Business Outlook
Reliance Industries Limited’s New Energy business is valued at nearly Rs 1.2 trillion on a sum-of-the-parts (SOTP) basis. Battery, solar module, and electrolyser manufacturing projects are entering the execution phase. The segment is seen as a potential long-term earnings and valuation driver.
RIL’s Strategic Deal with Meta Platforms
In a major strategic development, Reliance Industries Limited and Meta Platforms have partnered to develop a 168-megawatt data centre in Jamnagar, Gujarat, expected to be completed within two years.
This will be Meta’s first built-to-suit data centre capacity in India and marks a significant milestone in the country’s emergence as a global hub for AI infrastructure.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
