US stock futures steady with China trade talks, Q3 earnings in focus
Investing.com - Investec has initiated coverage on Reliance Industries (NS:RELIANCE) with a Buy rating and a price target of INR1,890.00, implying a 38% upside potential.
The research firm expects Reliance Industries to enter a phase of broad-based earnings recovery and strong cash generation after a year of underperformance, with group EBITDA projected to double by FY27 compared to FY22 levels.
Investec forecasts growth across multiple segments, with the energy division expected to rebound due to constructive refining margins, new petrochemical capacity, and stable upstream earnings.
The non-energy businesses are also positioned for expansion, with Retail projected to achieve a 14% revenue CAGR and the Jio division expected to deliver consistent ARPU-led growth.
At approximately 18.8x FY27E P/E, Investec notes Reliance Industries currently trades at a 15% discount to its 2018-25 average valuation, with improving free cash flow, rising returns, and potential value-unlocking catalysts including possible subsidiary IPOs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.