- Reliance shares rose nearly 3% after growth plans and Jio Platforms IPO details were announced
- Stock reached Rs 1,344.90, outperforming the Nifty 50 index which was up 0.47% at 10:50 a.m.
- Reliance aims to double consolidated EBITDA in five years and filed Jio IPO draft with SEBI
Reliance Industries Ltd. shares rose nearly 3% on Monday after investors assessed the conglomerate's growth plans outlined at its 49th annual general meeting and the proposed initial public offering of Jio Platforms.
The stock climbed as much as 2.7% to Rs 1,344.90 apiece. It was trading 2.18% higher at 10:50 a.m., outperforming the broader market, with the Nifty 50 up 0.47%.
The gains followed Reliance's announcement of an expansion strategy aimed at doubling consolidated EBITDA over the next five years. The company also disclosed that Jio Platforms' board had approved its proposed IPO and filed the draft red herring prospectus with the Securities and Exchange Board of India on Friday, June 19.
Jefferies Maintains Buy Rating
Brokerage Jefferies reiterated its "buy" rating on Reliance Industries after reviewing the AGM commentary. It lowered its target price to Rs 1,675 from Rs 1,695, implying a potential upside of 27.9% from the stock's previous close of Rs 1,309.50.
In a note, Jefferies said Reliance had reaffirmed the priorities outlined at its 2025 AGM. The brokerage said the company's access to capital, fibre connectivity and low-cost captive renewable energy could strengthen its position in India's data centre market.
Reliance announced investments across retail, artificial intelligence, new energy and satellite broadband as part of its long-term growth strategy.
Retail Recovery, Petrochemical Margins In Focus
Jefferies said Reliance Retail had identified manufacturing and exports as two new growth drivers, supported by a strategy spanning beverages, staples, fresh food and affordable electronics.
The brokerage said a recovery in the retail business could support a re-rating of the stock.
It also said Reliance's oil-to-chemicals business could benefit from stronger petrochemical spreads.
According to Jefferies, average petrochemical margins have risen 140% from pre-conflict levels, supporting profitability. It said damage to two of the largest petrochemical facilities in Iran and two major facilities in Saudi Arabia could keep supply tight.
"Naphtha exports to North-East Asia from the Middle East will take some time to normalise, possibly keeping margins elevated in the near term," Jefferies said.
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