Reliance Industries shares have 30% upside; Investec initiates on day of Q2 results

Brokerage firm Investec has initiated coverage on Nifty 50 heavyweight Reliance Industries Ltd

. with a "buy" recommendation on Friday, October 17, the day the company reports its results for its September quarter after market hours.

Investec has a price target of ₹1,890 on the stock, which indicates a potential upside of 30% from Thursday's closing levels. It also called Reliance Industries one of India's most attractive large-cap risk-reward opportunities.

The brokerage wrote in its note that Reliance is entering a phase of broad-based earnings recovery and strong cash generation. The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on a group level should double by financial year 2027 compared to financial year 2022, as guided by Chairman and Managing Director Mukesh Ambani during Reliance Industries' recent Annual General Meeting (AGM).

Reliance Industries will see broad-based growth with energy vertical likely to rebound on the back of constructive refining margins, new petrochemical capacity and stable upstream earnings, Investec wrote in its note, adding that the non-energy business growth will be driven by a robust 14% Compounded Annual Growth Rate (CAGR) in revenues of Reliance Retail and consistent expansion in the Average Revenue Per User (ARPU) of Reliance Jio.

At 18.8 times financial year 2027 estimated price-to-earnings, Reliance Industries is trading at a 15% discount to its average valuation at which it traded between 2018 to 2025, Investec's note said.

With improving free cash flows, rising returns and multiple value unlocking catalysts in place, including the potential IPOs of subsidiaries, Reliance Industries offers a compelling blend of cyclical recovery and structural growth, according to Investec.

37 analysts have coverage on Reliance Industries, of which 35 of them have a "buy" rating and the other two have a "sell" recommendation.

Shares of Reliance Industries ended 1.8% higher on Thursday, at the highest point of the day, at ₹1,398.5. The stock is up 15% so far in 2025. Reliance Industries will be reporting its September quarter results after market hours on Friday.