Reliance Industries shares have further re-rating scope on growth visibility, valuations: Jefferies
Published on 06/06/2025 08:22 AM
Reliance Industries shares have further re-rating scope on growth visibility, valuations: JefferiesDespite the RIL stock outperforming the Nifty by 12% year-to-date, it still trades below its long-term forward EV/EBITDA average, indicating scope for re-rating, Jefferies wrote in its note.By Meghna Sen June 6, 2025, 8:22:34 AM IST (Published)2 Min ReadShares of Nifty 50 heavyweight Reliance Industries Ltd. will remain in focus on Friday, June 6, after receiving a second positive brokerage view in two days.
Global brokerage firm Jefferies has maintained a ‘Buy’ rating on Reliance, with a price target of ₹1,650 per share. This implies a further upside of 16% from the current levels.
Jefferies wrote in its note that despite the stock outperforming the Nifty by 12% year-to-date (YTD), it still trades below its long-term forward EV/EBITDA average, indicating scope for re-rating.
Further, it said that visibility on FY26E growth is improving with continued space addition in the Retail business, a constructive tariff outlook for Jio, and a strong showing in the O2C segment in Q1.
On Thursday, shares of Reliance advanced after JPMorgan too reiterated a positive view on the stock. The foreign brokerage maintained its ‘Overweight’ rating with a price target of ₹1,568 per share.
JPMorgan expects Reliance’s earnings over the next two years to outpace the previous two. It pointed out that the stock has been under pressure due to earnings downgrades driven by weak commodity EBIT—a trend it believes is unlikely to persist, given already compressed margins. It added that improved profitability in the consumer business should support the company’s overall performance.
Of the 38 analysts tracking the stock, 36 have a ‘Buy’ recommendation, while only two have a ‘Sell’ rating.
Shares of Reliance Industries ended 1.37% higher on Thursday at ₹1,442.65. The stock is currently down 9.5% from its recent peak of ₹1,608, but has still gained 18% so far in 2025.Continue ReadingNote To ReadersDisclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsReliance IndustriesReliance Industries (RIL)Reliance Industries share priceshare market today