Goldman Sachs Adjusts Reliance Industries Stock Target Price, Retains 'Buy' Rating
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Mumbai, Jan 9 (NationPress) The global investment firm Goldman Sachs has announced a reduction in its target price for Reliance Industries Ltd (RIL) while sustaining a 'buy' rating for the diversified corporation.
The target price has been adjusted to Rs 1,595, down from the previous Rs 1,630. This updated target price indicates a potential upside of 26 per cent compared to the stock's closing price on Wednesday.
Goldman Sachs remarked, "We believe the sell-off in RIL's shares is overdone as the share price is now near our bear case scenario," in a detailed note.
The firm highlighted several factors that appear to be unfavorable for RIL, noting that the company's return inflection thesis is "taking longer than expected".
For the October-December quarter (Q3 FY25), Goldman Sachs anticipates RIL's EBITDA to “remain largely flat" year-on-year, despite a projected 5 percent sequential growth.
Additionally, the brokerage has reduced its EBITDA forecast for the fiscal years 2025 to 2027 by up to 4 percent.
On a more positive note, Goldman Sachs is hopeful regarding RIL's return expansion in fiscal 2026, with notable improvements already observed in the returns of its telecom subsidiary, Jio.
The firm expects an increase in earnings before interest, taxes, depreciation, and amortization of 24 percent year-on-year in fiscal 2026.
In contrast, Morgan Stanley has maintained its 'overweight' rating on RIL's stock, assigning a target price of Rs 1,662, which implies a 34 percent upside potential.
According to Morgan Stanley, "In 2025, as new refining capacity is absorbed, retail profitability improves, and new energy cash flows kick in, re-rating should regain traction," they stated.
For Q3 FY25, Morgan Stanley predicts that the company's EBITDA will remain flat year-on-year, despite a 4 percent sequential rise, as "telecom tariff hikes and tightness in global fuel markets filter through in profitability".
Meanwhile, Bernstein has set a target price of Rs 1,520 for RIL, suggesting an upside of 25 percent.
