Reliance Industries Share Price Target: Mukesh Ambani-led Reliance Industries is in focus after Motilal Oswal issued an outlook on the stock, highlighting potential upside. The optimism is driven in part by expectations around the upcoming Reliance Jio IPO, which could further enhance the stock’s attractiveness and support investor sentiment.
However, this bullish outlook for the stock comes after Morgan Stanley maintained an “Overweight” rating and set a price target of Rs 1,803, implying an upside of around 40 per cent from the current price level. Additionally, the stock is the top pick of analysts at Morgan Stanley.
The report also highlighted that the capitalisation of the 700 MHz spectrum and capital work in progress (CWIP) could lead to higher depreciation and amortisation, as well as increased interest costs in the profit and loss account from FY27 onwards. However, actual interest costs and interest cost capitalisation are expected to decline in FY26.
Motilal Oswal said free cash flow generation is set to rise significantly to Rs 214 billion, although tax deferrals remain a key contributor. It added that Reliance Jio is expected to remain the largest growth driver for Reliance Industries, with an estimated 18 per cent reported EBITDA compound annual growth rate over FY26-FY28.
Reliance Industries Stock Performance
From a return perspective, the stock has not performed strongly in the short to medium term but has proven to be a strong wealth creator for investors over the long term. The stock has risen nearly 500 per cent in 10 years, while showing moderate gains over the 5-year and 3-year periods.
(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.)
