Three key factors that drive Jefferies' bullish stance on Reliance Industries

Shares of Reliance Industries Ltd. gained in early trade on Friday, November 28, as brokerage firm Jefferies reiterated its positive stance on the stock, projecting a 14% potential upside from its previous closing price.

Jefferies maintained its "buy" rating on Reliance Industries with a price target of ₹1,785 per share. The stock ended the previous session at ₹1,564.8 apiece.

Jefferies said all three businesses of Reliance Industries (RIL) — digital services, energy and retail — are delivering double-digit growth in the ongoing financial year, so far.

Jio IPO

It said Jio's impending IPO could lead to tariff intervention in the near-term. RIL Chairman and Managing Director Mukesh Ambani, during the company's 58th annual general meeting (AGM), had said the firm's telecom unit Reliance Jio Infocomm would go public in the first half of 2026.

FMCG segment

Jefferies is also of the view that the FMCG segment is ripe for value discovery in the calendar year 2026.

Reliance's FMCG business was the fastest growing FMCG company in India

in the financial year 2025. It had higher sales compared to Tata Consumer Products' India business in the financial year 2025 and Marico. It also sold nearly as much as Dabur and triple of Emami in FY25.

Meanwhile, Isha Ambani, the executive director or Reliance Retail, told shareholders at AGM in August that Reliance Consumer Products was set to become a direct subsidiary of RIL to boost FMCG growth, global expansion and sharpen market focus.

Partnership with Google

Jefferies also said new energy and data centre partnership with Google are other optionalities for RIL.

Last month, RIL and Google announced a broad strategic partnership to expand access to artificial intelligence (AI) in India and create local compute capacity for India's growing digital ecosystem.

Stock performance

RIL shares were up 0.7% at ₹1,575.4 apiece in early trade on Friday. The stock has gained 28.4% this year, so far.

Jefferies said the RIL stock still trades below the mean long-term enterprise value (EV) / earnings before interest tax depreciation amortisation (EBITDA), keeping the risk-reward favourable.