JPMorgan has retained its ‘Overweight’ rating on RIL and a price target of ₹1,625 per share.
The brokerage has highlighted three potential scenarios for the oil-to-chemicals-to-telecom-to-retail conglomerate. They include, the Oil-To-Chemicals business delivering a positive surprise on the Earnings Before Interest, Tax, Depreciation and Amortisation front, the retail business showing accelerated growth, thereby attracting higher multiples, and further crystallization of valuations within the renewable energy segment.
JPMorgan has currently not ascribed any value to the renewables venture yet, neither for its real estate holdings or for its fast-growing FMCG business.
Mathematically, JPMorgan expects further downside pressure for Reliance, in case retail multiples go further down, or the holding company discount increases further.
The brokerage expects the retail business to do well in the December quarter on the back of base effects on the margins front, while the O2C business should also do well. Reliance Industries has also guided for completion of major cell and battery lines by March 2027.
Two days ago, Jefferies maintained its ‘Buy’ rating on RIL with a price target of ₹1,710 per share.
Jefferies said around 4% of global refinery throughput has been disrupted due to conflicts, pushing diesel and gasoline inventories to five-year lows. As a result, Singapore gross refining margins (GRMs) remain close to lifetime highs, with the brokerage expecting the tightness to persist through calendar 2026.
The brokerage also expects firm petrochemical spreads to support earnings growth in Reliance’s O2C business in FY27.
RIL has strong analyst coverage, with 30 of the 31 analysts tracked having a ‘Buy’ recommendation, while one has a ‘Sell’ rating.
Shares of Reliance Industries are trading 0.4% lower on Thursday at ₹1,307.7.
