Reliance Industries Share Price Target: RIL Gets 'Buy' From CITI - Details

Citi has upgraded its rating for Reliance Industries to "Buy" from "Neutral" and raised its target price to Rs 1,530 per share, citing an improved risk/reward outlook after a period of underperformance. The research firm now believes that the company's stock presents an attractive investment opportunity as it expects a favourable shift in the fundamentals of key business segments.
Citi analysts highlighted the potential for an improvement in refining margins, largely driven by China’s reduced export competitiveness, which could benefit Reliance’s refining business. The analysts expect this to positively impact the company's earnings in the near term.

Drivers for Upgrade

Reliance's telecom arm, Jio, also remains a key focus for Citi, with the research firm stating that the company is well-positioned to benefit from any future tariff hikes and further improvements in data pricing. Jio’s strategy to monetize 5G services is expected to provide additional growth momentum, which could result in increased profitability in the coming quarters.

However, the brokerage noted that the retail segment may continue to face softness for another couple of quarters, mainly due to ongoing macroeconomic headwinds. This could lead to a modest reduction of about 1 per cent in average consolidated EBITDA for Reliance Industries over FY25-27. Despite this, Citi maintained its positive outlook on the company, bolstered by strong performances in refining and telecom.
Reliance Industries, led by billionaire Mukesh Ambani , has faced headwinds in recent months, but Citi’s revised stance highlights a more optimistic view of the company's long-term growth prospects. With this upgrade, Citi joins a growing list of analysts who remain bullish on Reliance despite short-term challenges in its retail business.

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