Up to 36% upside! Reliance Industries share target price from CLSA and 4 other foreign brokerages

Amid a series of earnings downgrades and target price adjustments driven by retail weakness and falling refining margins, Reliance Industries (RIL) shares have plummeted nearly 23% from their July peak. Trading at Rs 1,245 on the BSE, the stock is now at its most attractive valuation since March 2020. Here’s how five major brokerages view RIL, along with their target prices and ratings:

CLSA highlighted RIL’s current bargain valuation, recommending investors capitalise on growth catalysts like new energy capacity, retail recovery, Airfiber subscriber ramp-up, and a potential Jio IPO in late 2025. The brokerage maintained an ‘outperform’ rating with a target price of Rs 1,650, suggesting a 33% upside.

With refining challenges easing and retail pressures priced in, Morgan Stanley said it anticipates a turnaround by 2025, driven by improved refining capacity utilization, retail profitability, and new energy cash flows. The firm remained ‘overweight’ on RIL, with a target price of Rs 1,662 per share, reflecting a 34% upside.

Viewing the recent sell-off as overdone, Goldman Sachs emphasized that RIL's current price approaches its bear-case valuation. Highlighting long-term NAV growth potential and historical outperformance versus the Sensex, the brokerage reiterated its ‘buy’ rating with a 12-month SOTP-based target price of Rs 1,595 per share, a 28% upside.

Despite a significant market cap decline since September 2024, Bernstein said it sees RIL’s EBITDA bottoming out with a forecasted 19% growth in FY26. The brokerage predicted recovery across segments and upgraded its target price to Rs 1,520 per share, indicating a 22% upside, while maintaining an ‘outperform’ rating.

Jefferies acknowledged RIL’s underperformance against the Nifty in 2024 but said it anticipates renewed growth in retail, potential Jio listing, and improved profitability in FY26. With an expected EBITDA growth of 14% in FY26, Jefferies deems RIL’s valuation the cheapest since March 2020. The brokerage retained a ‘buy’ rating and set a target price of Rs 1,690 per share, reflecting a 36% upside.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)