- Shares of Reliance Industries climbed nearly 3 per cent on Monday after its digital unit Jio Platforms filed draft papers for what could become India's largest-ever initial public offering.
- Reliance Industries stock jumped 2% after the annual general meeting (AGM), with brokerages predicting an upside of up to 34% due to developments in AI and the Jio IPO.
- Brokerage firm Jefferies predicts that Reliance Industries shares could re-rate if the retail business recovers, with a target price of ₹1,675, implying an upside potential of 28%.
- Nomura has a 'buy' rating on Reliance Industries with a target price of ₹1,640, indicating an upside potential of over 25%.
- CLSA maintained its 'outperform' rating on Reliance Industries with a target price of ₹1,800, suggesting a potential upside of more than 34%.
- Mukesh Ambani unveiled a roadmap for the company's next phase during the AGM, which has contributed to the stock's positive momentum.
- Analysts believe that Reliance will continue to re-rate as key milestones are achieved, including the Jio IPO and the commissioning of new energy projects.
Shares of Reliance Industries Ltd. rose nearly 3% on Monday after its digital unit Jio Platforms filed a draft red herring prospectus (DRHP) for a potential IPO, which could be the largest in India’s history.1
The stock's rally was further supported by billionaire Mukesh Ambani's announcement of a roadmap for the company's next growth phase during its annual general meeting (AGM).6
Analysts are overwhelmingly bullish, with 33 out of 34 analysts recommending a buy. Jefferies has set a price target of ₹1,675, indicating a potential upside of 28% from current levels. Nomura and CLSA also maintain buy ratings, with targets of ₹1,640 and ₹1,800, respectively, suggesting upside potentials of over 25% and 38%.457
The anticipated IPO is expected to be a significant catalyst for the stock, with analysts noting that the stock could re-rate as key milestones are achieved, including the Jio IPO and the commissioning of a 10 GW integrated solar project.
The company aims to double its consolidated EBITDA to ₹4.2-4.5 trillion by FY31, which could enhance its return on capital employed (ROCE) and drive a meaningful re-rating of the stock.
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As Reliance Industries continues to expand its footprint in various sectors, including new energy and artificial intelligence, the market remains optimistic about its future growth prospects.
“Reliance Industries shares climbed nearly 3% following the filing of Jio's IPO draft papers. Brokerages like Jefferies and Nomura project substantial upside potential for the stock.”
CNBC TV18