After a 20% drop from July to October, Reliance Industries’ stock has increased by 8% over the past ten trading days. Analysts remain optimistic despite recent downturn, pointing to Jio’s growth possibilities, the company’s new energy sector, and a possible recovery in refining margins. With target prices between ₹1,468 and ₹1,662, international brokerages such as JPMorgan, Morgan Stanley, Citi, and CLSA have reaffirmed their favorable ratings.
The stock experienced significant selling pressure from July to October, losing 20% of its value; this rebound is noteworthy. Domestic brokerage JM Financial claims that the recent decline in Reliance Industries’ stock is due to a 5-6% downgrade in consensus FY25 EBITDA estimates, which was caused by O2C (oil-to-chemicals) and retail segments’ poorer-than-expected performance in H1FY25 and unclear Jio listing timelines.
Foreign institutional investors’ (FIIs’) rapid selling contributed to the fall. As of October 2024, FII interests in the corporation had dropped by 112 basis points in October and 169 basis points throughout the July–October period, bringing their position down to 22.5%.
Despite this, the brokerage kept its profit projections and its “buy” rating on the stock, but it lowered the target price by 4% to ₹1,660 (from ₹1,735). Due to possible interruptions from the rapid commerce segment that could affect the chance to digitize Kirana stores, JioMart (formerly valued at ₹79/share) has been given a zero value, which is a conservative approach.
About Reliance Industries
Located in Mumbai, Reliance Industries Limited (RIL) is one of the biggest private sector businesses in India. Initially a tiny fabric manufacturer, RIL was formed in 1966 by Dhirubhai Ambani and has since grown into a worldwide corporation with operations in petrochemicals, chemicals, refining, oils, telephony, and retail.
RIL operates in a broad and dynamic environment where consumer demands and preferences are always changing along with technology advancements. This put it in the center of India’s economic industrial and digital transformation because it actively participates in vital industries like telecommunications and electricity.
