Jio Platform IPO: Reliance Stock Under Pressure Post AGM But Brokerages Remain Bullish—Here's Why

Jio Platform IPO: Several brokerages maintained a positive rating on Reliance Industries following its Annual General Meeting (AGM) on Aug. 29, Friday, highlighting the company's plan to list Jio Platforms by the first half of 2026.

Brokerages are bullish on Reliance Industries, particularly on back of its multi-modal growth segments, spanning various sectors, including retail and telecom. They also highlighted a multi-decadal growth opportunity for the Mukesh Ambani-led conglomerate.

JPMorgan remained bullish on Reliance Industries, maintaining an 'Overweight' rating with an unchanged target price of Rs 1,695. JPM notably pointed out RIL's plans to list Jio Platforms by next year, asserting that the move is not a value-unlocking scheme anymore.

That is largely because Jio's valuation within the RIL stock has already marked to market to peer multiples. This means the market has already priced in Jio's valuation and market positioning within the Reliance stock and therefore, there may not be any additional value unlocking through the listing of Jio Platforms.

Still, JPMorgan said the probability of tariff hikes ahead of the IPO could serve as a near-term stock catalyst. It flagged concerns of an eventual holding company discount materialising post-Jio listing but added that such risks appear largely priced in.

Jefferies has also come out with a note on Reliance Industries, maintaining a 'Buy' rating with an unchanged target price of Rs 1,670.

Jefferies points out that RIL stock does run the risk of a holdco discount ahead of the Jio-IPO listing, especially as the management looks to sell 5G stacks overseas and expand business.

In terms of other segments, Jefferies expects the FMCG business to large investments, which in turn, may propel its revenues to $12 billion in five years.

New energy business, meanwhile, has also been scaled up and targets have been outlined, adding to positive brokerage sentiment around the RIL stock.

Nuvama maintained 'Buy' on Reliance Industries, with an unchanged target price of Rs 1,733. With FY22 as a base year, Nuvama believes RIL could double its EBITDA by FY27. It also noted that the Oil to Chemical (O2C) business expansion is on track.

Nuvama extensively highlighted Reliance's O2C, Petchem and New Energy businesses, offering a rather rosy outlook going forward.

The brokerage firm also pointed out that Retail and Digital segments could witness strong growth, with RIL also having AI and FMCG as key growth levers going forward.