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Jio IPO Fuels Reliance Stock Rally Hopes
28 Apr
Summary
- Goldman Sachs raises target price to Rs 1,910, highest among brokerages.
- Jio IPO expected soon, potentially acting as a major catalyst.
- Analysts see integrated downstream position benefiting from market tightness.
Reliance Industries is experiencing renewed focus as global brokerages, including Goldman Sachs, predict substantial gains. Goldman Sachs has elevated its 12-month target price to Rs 1,910, citing the company's integrated downstream position and potential benefits from a tightening refining and petrochemicals system.
Analysts suggest the worst of the oil-to-chemicals (O2C) segment's pressures may be subsiding. The impending Initial Public Offering (IPO) of Jio Platforms is frequently highlighted as a significant near-term catalyst that could boost both Reliance and the telecom sector.
Despite a recent tough quarter for the O2C business, impacted by geopolitical events, brokerages note improvements. Goldman Sachs expects sequential margin expansion in the June quarter, supported by access to varied crude sources and recovering naphtha cracking spreads.
Reliance's retail segment continues to show robust topline growth, particularly in grocery and fashion, with JioMart reporting a substantial increase in daily orders. New energy initiatives in solar and battery manufacturing are also progressing, alongside momentum in hyper-local businesses.
