RIL Share Price: Brokerage firm Nuvama Institutional Equities has maintained its positive stance on Reliance Industries Ltd (RIL), reiterating a ‘Buy’ rating, which implies significant upside potential from the current market levels.
Strong Growth Drivers Identified
Nuvama expects multiple new growth engines to drive Reliance’s performance in the coming years. The brokerage believes that from FY27 onwards, the company’s New Energy business will start making a meaningful contribution to earnings.
Key emerging segments highlighted include the following:
Reliance Intelligence (AI)
Reliance Consumer Products Ltd (RCPL)
New Energy Momentum to Accelerate
According to the report, Reliance is set to begin generating revenue soon from its solar module plant.
The company is aggressively investing in forward-looking areas such as the following:
Battery storage (40 GWh capacity)
Green Hydrogen and electrolysers (3 GW)
Nuvama also noted Reliance’s long-term supply agreement worth $3 billion with Samsung C&T for green ammonia as a positive development.
The filing of the Draft Red Herring Prospectus (DRHP) for the Reliance Jio Platforms IPO has been viewed positively. While the IPO is expected to unlock value at attractive valuations, the brokerage cautioned that a holding company discount may limit the direct benefit to RIL shareholders.
Additionally, Reliance Consumer Products aims to achieve Rs 1 lakh crore in revenue by FY30. Petrochemical expansion projects are also expected to be completed by FY27.
Nuvama remains optimistic that New Energy, AI, FMCG (Fast-Moving Consumer Goods) and petrochemical expansions will strengthen both earnings and valuation multiples for Reliance Industries in the medium to long term.
On Friday, RIL shares closed at RS 1,309.35, up 1.25 per cent for the day.
(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.)
