Jefferies maintains Buy on Reliance Industries stock, citing O2C strength

Published 05/09/2025, 07:58
© Reuters.

Investing.com - Jefferies has reiterated a Buy rating on Reliance Industries (RELIANCE:IN) with a price target of INR1,670.00, highlighting stronger-than-expected performance in the company’s oil-to-chemicals (O2C) segment.

The firm notes that O2C profitability in the first half of fiscal year 2026 to date is tracking 15% higher year-over-year, compared to Jefferies’ full-year forecast of 8% growth, driven by strength in auto fuels.

Jefferies addresses investor concerns about Russian crude benefits, estimating they contribute only 2.1% to consolidated FY27 EBITDA, suggesting limited dependency on this source.

The research firm mentions that Reliance’s Jio subsidiary has an upcoming IPO that could lead to near-term tariff intervention, though specific details weren’t provided.

With improving visibility on double-digit consolidated EBITDA growth in fiscal year 2026, Jefferies believes Reliance Industries’ EV/EBITDA multiple is "ripe for inversion," supporting its maintained Buy rating and INR1,670.00 price target.

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