Synopsis: CLSA maintains an Outperform rating on Reliance Industries, citing Jio IPO clarity, low free float, and diversified growth across FMCG, OTT, AI, new energy, and quick commerce, supporting a 32 percent upside.
The article will outline the rationale behind the upside given by the brokerage for the company, which is India’s largest private sector corporation, dominating sectors like energy, petrochemicals, retail, and digital services
With a market capitalization of Rs 18,80,743 crore, Reliance Industries Ltd’s shares on Thursday closed at Rs 1399 per share, up by 3.29 percent from its previous day’s close of Rs 1345.55 per share. The shares of this company have given a return of 18 percent over the last year.
Brokerage’s View
CLSA maintains an Outperform rating on Reliance Industries Limited (RIL), with a current market price of Rs 1,358 and a target of Rs 1,800, implying an upside of approximately 32 percent. The brokerage highlights potential value from Jio’s IPO and emerging growth verticals.
Holding Discount Concerns Overstated: CLSA views concerns over a potential holding company discount post Jio IPO as overstated. The brokerage believes that the market is likely overestimating the risk, as investors will gain clearer visibility into Reliance’s value and direct exposure to Jio once it becomes a separately listed entity.
Valuation Support from Low Free Float: The limited 2.5 percent free float in Jio is expected to provide strong valuation support, creating a scarcity premium in the secondary market. This structural supply constraint, combined with the option to invest directly in Jio, reinforces the stock’s appeal and underpins the brokerage’s positive outlook.
Diversified Growth Drivers: RIL’s growth outlook extends beyond its core energy and telecom businesses, with diversification expected to come from FMCG, OTT platforms, Artificial Intelligence (AI), New Energy initiatives, and Quick Commerce, providing multiple avenues to strengthen earnings and long-term value creation.
Reliance Industries’ subsidiaries span multiple growth verticals. In FMCG, key entities include Reliance Retail Ventures Ltd, Reliance Retail Ltd, and Reliance Consumer Products Ltd. The OTT and digital content space is anchored by Jio Platforms Ltd and Digital18 Media Pvt Ltd, supporting streaming and media initiatives.
For AI and New Energy, subsidiaries include Reliance Intelligence Ltd, Addverb Technologies, Reliance New Energy Ltd, Reliance New Solar Energy Ltd, and hydrogen and battery-focused entities. Quick commerce is driven by JioMart under Reliance Retail, enabling rapid delivery. Together, these subsidiaries form the backbone of RIL’s diversified growth strategy across technology, energy, retail, and digital services.
Reliance Industries Limited (RIL) is India’s largest private-sector company, operating across energy, petrochemicals, refining, retail, and digital services. Led by Mukesh Ambani, RIL combines traditional businesses with emerging verticals like telecom, digital platforms, AI, new energy, and consumer products, driving diversified growth and innovation.
Financial Highlights: The revenue from operations grew by 10 percent to Rs 2,64,905 crore in Q3 FY26 from Rs 2,39,986 crore in Q3 FY25, and EBIDT grew by 5 percent to Rs 46,018 crore in Q3 FY26 from Rs 43,789 crore in Q3 FY25. Accompanied by a net profit growth of 1.6 percent to Rs 22,290 crore in Q3 FY26 from Rs 21,930 crore in Q3 FY25, resulting in an EPS growth of 0.6 percent to Rs 13.78 per share in Q3 FY26.
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