UBS sees room for a re-rating in Reliance Industries, citing digital, retail, and new energy as key levers.
CLSA and JPMorgan have also retained bullish calls, with price targets between ₹1,650–₹1,695.
Market attention now shifts to Reliance’s AGM on August 29 for clarity on IPOs, AI plans, and FMCG growth.
UBS Sees Re-Rating Potential in Reliance Industries, Forecasts 24% Upside
UBS sees Jio and Retail entering a 'harvesting phase,' while New Energy is expected to add to profits from FY27
RIL Chairman Mukesh Ambani
Summary
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Global brokerage house UBS has struck an optimistic tone on Reliance Industries (RIL), suggesting that the conglomerate could be primed for a re-rating as it unlocks value across businesses ranging from digital to new energy.
Resuming coverage with a ‘buy’ call, UBS has set a price target of ₹1,750 for the stock, implying an upside potential of about 24% from Monday’s closing levels. The firm argued that Reliance is ‘building India’s digital and new energy future,’ with its telecom and retail arms now moving into what it touted as a ‘harvesting phase.’
Meanwhile, RIL’s flagship oil-to-chemicals division, long seen as the conglomerate’s earnings backbone, is expected to become less cyclical as the energy transition gathers pace, UBS believes.
Accordingly, UBS expects the company’s much-hyped new energy business to start contributing to earnings from FY27 onwards.
UBS’ optimism mirrored a broader positive consensus on RIL. Just last week, CLSA had reiterated its ‘outperform’ rating on RIL with a ₹1,650 price target, pointing to artificial intelligence initiatives under Jio, the expansion of its media and consumer businesses, and integration across the new energy value chain as structural growth drivers.
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In addition, CLSA also pointed that investors will be watching the company’s Annual General Meeting on August 29 for potential announcements on Jio’s IPO, updates on AI ambitions, and more clarity on its push into fast-moving consumer goods.
JPMorgan too also joined the list, reiterating its ‘overweight’ rating on RIL and pegging its target at ₹1,695. The firm said RIL’s relative valuations still look attractive despite the stock’s strong run this year. Stronger refining and petrochemical margins, possible tariff hikes in telecom, and accelerating retail growth are likely to provide further tailwinds, it added.
As Reliance approaches its much-anticipated AGM, the market’s gaze is firmly fixed on whether India’s most valuable company can once again deliver a new growth story and double its business by 2030, just as top boss Mukesh Ambani, envisions.
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