The brokerage firm Jefferies continued to maintain a ‘Buy’ rating on Reliance Industries (RIL). According to the brokerage, the key growth factors will support RIL’s long-term performance. Furthermore, the brokerage firm maintains a price target of Rs 1,660.
Let’s take a look at the four reasons why the brokerage firm remains positive on the stock:
1. No immediate financial impact from KG-D6 ruling
According to the brokerage firm, the Delhi High Court’s ruling in favour of the Indian government, requiring RIL-BP to pay $1.55 billion, is unlikely to have a near-term impact on the company.
The brokerage in its report noted, “RIL is expected to challenge the ruling in the Supreme Court, and the legal battle could extend further.”
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The brokerage house also in its report noted out that the Reliance Industries’s retail business, which had slowed down in recent quarters, is showing signs of a strong recovery.
According to Jefferies, “Retail revenue growth has rebounded to high single digits in Q3, indicating that the phase of consolidation is largely over.” The firm expects retail segment growth to accelerate in FY26, supporting overall profitability.
3. Jio’s possible public listing
On of the key potential trigger as per the brokerage firm for RIL’s stock is the anticipated listing of Jio.
As per the brokerage firm, “The likely IPO of Jio could unlock significant value for RIL shareholders.”
With India’s telecom sector poised for tariff hikes, Jio’s financial performance is expected to strengthen further, making it as an important factor to note as per the brokerage.
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Reliance’s oil-to-chemicals (O2C) segment has faced cyclical lows, but an improvement is also on the horizon.
The brokerage notes “profitability in the O2C segment is set to recover as global refining margins improve.”
Reliance Industries stock performance
Over the past five days, RIL’s share price has dropped by nearly 3%, while over the last six months, it has declined by 18%. Looking at a broader period, the stock has fallen by 17%.
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