Brokerage firm Citi Nifty 50 heavyweight Reliance Industries Ltd. Upgraded its shares to “Buy” from “Neutral”. Along with this, he has increased the price target of the stock from ₹ 747 to ₹ 1,530.
Citi’s revised price target reflects a potential upside of 21% from Friday’s closing levels. The index’s heavyweight stocks gained 3.5% on Friday, contributing about 70 points of the Nifty’s 550 points.
The brokerage firm in its note said that after a long period of underperformance, the risk-reward has now become favorable for Reliance Industries. It’s important to note that the stock had fallen more than 20% from its recent peak before Friday’s rally.
Citi expects Reliance Industries’ refining margins to improve due to declining export competition from China.
As far as Jio is concerned, Citi said the telecom division is well-positioned to benefit from any future tariff increases and improvements in data pricing and efforts to monetize 5G. However, according to Citi, the slowdown in the retail vertical may continue over the next few quarters and result in an average 1% decline in Reliance’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) during financial years 2025-2027. Is.
Of the 38 analysts covering Reliance Industries, 32 now have “Buy” ratings on the stock, while three analysts each have “Hold” and “Sell” recommendations.
On November 13, CLSA had also predicted an upside of 30% for Reliance Industries shares and cited several triggers in 2025. He valued Reliance’s solar business at $30 billion and the total new energy business at $43 billion.
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