CLSA says Reliance Industries shares may gain 29% — here's why

Brokerage firm CLSA has raised its price target on shares of Reliance Industries to ₹1,800 in its latest note on Tuesday, January 21.

CLSA is the eighth, among the 37 analysts covering the stock, who has a price target of ₹1,800 or more on the oil-to-chemicals-to-telecom-to-retail conglomerate, and Nifty 50 heavyweight.  The price target implies an upside potential of 29% from Tuesday's closing levels.

The brokerage wrote in its note that the listing of Jio by mid-2026 may turn out to be a key event for the company this year.

CLSA is valuing RIL's telecom division Jio at an Enterprise Value of $161 billion as of March 2027 and $190 billion for March 2028, based on a 15% premium to global peers, citing Free Cash Flow as a preferred metric in comparing Jio to its global peers.

However, the brokerage has cut down its multiples for the new energy business, and also trimmed the retail business value to an implied 10% below equity value of the stake sale that was done over two years prior.

Potential growth in quick commerce, FMCG and the media business offer value as well, as per the CLSA note.

For the December quarter, Reliance Industries reported revenue of ₹2.65 lakh crore compared to ₹2.55 lakh crore in the previous quarter led by the O2C business. Retail business grew 8.4% during the quarter due to the demerger of the consumer products portfolio, festive season and the GST rate rationalization.

35 out of the 37 analysts covering Reliance Industries have a "buy" rating on the stock, while the other two have a "sell" rating.

Shares of Reliance Industries ended 1.5% lower on Tuesday at ₹1,392.4. The stock is down 13% from its record high of ₹1,611 that it had it earlier this month.