Reliance Ind share up 2% as Kotak Institutional Equities upgrades to 'Buy'

RIL share price: Reliance Industries Limited (RIL) shares saw strong demand on Thursday, March 6, as the scrip surged up to 2.15 per cent to hit an intraday high of Rs 1,201.05 per share.

 

The uptick in RIL’s share price followed an upgrade from domestic brokerage firm Kotak Institutional Equities, which raised its rating to ‘Buy’ from ‘Add’. 

 

The brokerage, however, has revised its fair value (FV) to Rs 1,400, down slightly from Rs 1,435. This target price reflects an upside of 19.07 per cent from its previous close of Rs 1,175.75 on Wednesday, March 5, 2025. 

 

Analysts at Kotak Institutional Equities noted that RIL’s stock had faced a major correction, with a 22 per cent drop over the past 12 months. 

 

 

The subdued performance of the retail segment was a key factor behind the weak performance, but analysts expect the store-rationalisation cycle to conclude soon.

 

Additionally, while increased sanctions on Russia and reciprocal tariffs by the US have weakened the refining outlook, analysts at Kotak Institutional Equities have reduced its FY2026/27E Ebitda by 1-3 per cent. 

 

Despite the cut, the brokerage expects an earnings compound annual growth rate (CAGR) of around 11 per cent from FY2024 to FY2027E. 

 

With the stock’s major correction, analysts believe, the risk-reward ratio now looks more favourable. 

 

Moreover, the retail business is also expected to improve in the coming quarters, while news regarding telecom business IPO timelines and potential tariff hikes could act as catalysts. 

 

On similar lines, foreign brokerage firm Jefferies has reportedly maintained its ‘Buy’ rating with a  target price of Rs 1,600, which reflects an upside of 36.08 per cent from its previous close. 

 

RIL Q3 results

 

Reliance Industries Ltd (RIL), a leading oil-to-telecom conglomerate, surpassed analyst expectations by posting a 7.4 per cent year-on-year (Y-o-Y) increase in consolidated profit, to Rs 18,540 crore for the third quarter of the current financial year (Q3FY25). The company’s consolidated profit before interest, depreciation, and taxes (PBIDT) also rose by 7.8% Y-o-Y, totaling Rs 48,003 crore.

 

In a Bloomberg survey, 11 analysts had predicted consolidated revenue of Rs 2.33 trillion, while nine analysts anticipated an adjusted net income of Rs 18,326 crore for RIL in Q3FY25. READ MORE

 

About RIL

 

Reliance Industries Limited (RIL) is India's largest private sector company and a multinational conglomerate, headquartered in Mumbai. 

 

A Fortune 500 company, RIL operates in diverse sectors such as energy, petrochemicals, retail, and textiles, and is a leader in each of these industries.

 

Founded by Dhirubhai Ambani, RIL made history as the first privately owned Indian company to enter the Fortune 500. 

 

The market capitalisation of RIL is Rs 16,13,938.45 crore, according to BSE.

 

At 10:42 AM, RIL share was trading 1.44 per cent higher at Rs 1,192.65. In comparison, BSE Sensex was trading flat with a positive bias at 73,776.63.