RIL shares rise: Kotak upgrades stock; Jefferies sees 35% uspide; check targets

Shares of Reliance Industries Ltd (RIL) gained more than 2 per cent during the trading session on Thursday amid the positive brokerage action over the company. A couple of brokerages have reiterated their positive stance on the Mukesh Ambani-led conglomerate including upgrades.

Shares of Reliance Industries inched up 2.15 per cent to Rs 1201.05 on Thursday, commanding a total market capitalization close to Rs 16.25 lakh crore. The oil-to-telecom-to-retail major had tested its 52-week low at Rs 1,156 earlier this week, falling 28 per cent from its 52-week high at Rs 1,608.95, hit in July 2026. The stock is down 20 per cent in the last six months.

Domestic brokerage firm Kotak Institutional Equities upgraded Reliance Industries to 'buy' from 'add' earlier, considering the recent correction in the stock. Kotak said that subdued retail was a key reason for weak performance, expect store-rationalization cycle to end soon and increased Russia sanctions & repercussions of reciprocal US tariffs weaken refining outlook.

Kotak has cut FY26/27E Ebitda by 1-3 per cent, but despite the cut, it expect earnings CAGR of 11 per cent over FY2024-27E. "With significant correction, risk-reward is more favorable and news flows on telecom business IPO and likely another tariff hike can be a catalyst," Kotak added with a target price of Rs 1,400, suggesting a more than 18 per cent upside in the stock.

Overseas brokerage firm Jefferies maintained its 'buy' rating on the stock with a target price of Rs 1,600. "RIL's underperformance to Nifty is due to a slowdown in Retail and subdued earnings in O2C and pessimism seems extreme with current marketcap implying $ 48 billion EV for Retail versus $ 106 billion in the last funding round," it said.

Combination of SSG growth and area addition should restore 15 per cent growth in Retail in FY26, said Jeffereis "A tariff hike, likely listing of Jio, and improvement in O2C profitability are other potential triggers," said the foreign brokerage firm with a target price of Rs 1,600, suggesting a 35 per cent upside in the stock.

Reliance Industries reported a 7.38 per cent rise in its consolidated net profit (attributable to owners) to Rs 18,540 crore in the December 2024 quarter. The consolidated revenue for the oil-to-telecom major grew 6.97 per cent YoY to Rs 2,43,865 crore for the third quarter, with Ebitda rising 7.8 per cent YoY to Rs 48,003 crore.

Post the Q3 results, HDFC Securities has an 'add' rating on RIL with a target price of Rs 1,670, while Nuvama Institutional Equities had a 'buy' rating on the stock with a target price of Rs 1,673 apiece. Morgan Stanley and Bernstein remained 'overweight' on the stock with a target price of Rs 1,662 and Rs 1,520, respectively.