Reliance share price rises 2% on Kotak upgrade to ‘buy’; should you buy or sell?

Reliance Industries (RIL) share price rose up to 2.2 per cent on Thursday, reaching ₹1,201.05 on the BSE, after brokerage firm Kotak Institutional Equities upgraded the stock to ‘buy’ from ‘add’.

At 9:30 am, RIL share price touched was trading at ₹1,197.60 apiece on the National Stock Exchange (NSE).

Another brokerage, Jefferies, also reiterated its "buy" rating on the stock with a target price of ₹1,600. The brokerage highlighted a potential rebound in RIL’s retail segment and a possible tariff hike in its telecom division amid a sharp decline in the stock from its peak.

At the stock’s current price, Jefferies’ target indicates a possible upside of 33.2 per cent, whereas Kotak’s revised target price projects a potential gain of 16.6 per cent.

RIL stock has declined by nearly 27 per cent from its 52-week high of ₹1,608.95 in July 2024, facing pressure due to worries about slowing retail growth and weaker earnings in its oil-to-chemicals (O2C) segment.

Brokerages on RIL growth

Kotak, which had previously taken a cautious approach, noted that the stock's 22 per cent drop over the past year has made its valuation appealing. While the brokerage has slightly reduced its FY26-27 EBITDA estimates by 1-3 per cent, it still projects an 11 per cent earnings CAGR for FY24-27.

The brokerage anticipates growth in the retail sector over the coming quarters, while developments in the telecom business, IPO timelines, and potential tariff hikes could serve as key drivers for the stock.

Although RIL shares rebounded on Thursday, they are still in a downtrend, having declined 20.3 per cent over the past year and 9.6 per cent in the last three months.

Among the 38 analysts covering Reliance Industries, 34 have assigned a "buy" rating, one recommends "hold," and three have given a "sell" rating, as per Trendlyne data. The consensus price target estimates suggest a potential upside of 31 per cent for the stock in the future.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.