Reliance Industries-Analysts maintain bullish 2024 outlook led by Retail and Jio . Jefferies sees more than 20% upside
Key reasons for analysts maintaining positive outlook- These include reasonable valuations the stock now trades at. Furthermore, the expectations remain high for consumer-oriented businesses as that of telecom and retail that now contribute more than half to Reliance Industries consolidated operating profits. The Capex cycle is behind, and the profitability improvement may be driven further by any tariff hikes in Jio.
Expectations from Oil to chemical business remain muted looking at current volatility in refining margins and petchem prices. Nevertheless value discovery in new energy businesses can drive upside. Meanwhile investors will be eyeing listing of Jio for further value unlocking.
Jefferies India Pvt Ltd maintain Buy ratings. Analysts at Jefferies have maintained Buy ratings on Reliance Industries with target price of ₹3125 for stock trading at about 2600 levels in their recent report. They said that Reliance Industries underperformed Nifty by 9% in Calendar year 2023 and trades cheap relative to Nifty.
They forecast 13% Ebitda growth in FY25 with Jio contributing two-thirds share on the back of a tariff hike. Ebitda stands for Earnings before interest tax depreciation and amortisation. They expect capex to decline in Jio and Retail in FY25, helping improve free cash flows, abating concerns about a rise in net debt.
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