Shares of Mukesh Ambani-led Reliance Industries gained 4 per cent in early trade on Monday as brokerages were optimistic as the fourth-quarter profit beat estimates.
They believe that Reliance Jio is the biggest growth driver with 21 per cent EBITDA CAGR over FY25-27.
The company, post market hours on Friday, reported a consolidated net profit of ₹19,407 crore for the March quarter, up 2.4 per cent y-o-y, and 10 per cent increase in revenue to ₹2.65 lakh crore, beating estimates.
Nuvama Institutional Equities said that modest net debt kept the weighted average cost of capital (WACC) in check. The brokerage estimates new energy (NE) PAT share could rise to 12 per cent by FY30.
It has maintained buy at a target price of ₹1,708, the highest.
Motilal Oswal has reiterated buy at a target price of ₹1,515. It expects growth recovery in retail after the recent rationalisation of unprofitable stores and B2B, driven by footprint/category additions and its foray into quick commerce.
Motilal has build in a CAGR of 13-14 per cent in consolidated EBITDA and PAT over FY25-27, driven by a double-digit EBITDA CAGR in Reliance Jio and Retail. “After a subdued FY25, we expect earnings to recover in the O2C segment, driven by improvement in refining margins. However, our FY27E consolidated EBITDA for O2C and E&P is marginally lower than FY24 levels,” it added.
Global brokerage Macquarie and CLSA have assigned outperform calls at a target price of ₹1,500 and ₹1,650, respectively, while Jefferies and Nomura have maintained buy at ₹1,660 and ₹1,650.
The stock is Nomura’s top pick in energy segment as it expects the company to grow on the back of scale-up of new energy business, upcoming tariff hikes for Jio and its potential listing.
Shares of Reliance Industries traded 4.14 per cent higher on the NSE at ₹1,354.30, hitting an intraday high of ₹1,355. The stock lead the gainers of Nifty 50 components.
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Published on April 28, 2025
