Reliance increases by 4% as Goldman Sachs projects a 56% increase in stock price by FY26.

Reliance Industries' Stock Surges on Goldman Sachs' Bullish Outlook

GS predicts up to 56% upside potential by FY26, citing peaking capex and value from the media joint venture.

Reliance Industries (RIL) stock rose 4% following Goldman Sachs' revised target price.

Goldman Sachs Forecasts Positive Outlook for RIL

GS raised RIL's target price to Rs 3,400 from Rs 2,925, expecting an 18% upside.

Bull-case scenario projects stock could reach Rs 4,495 by FY26, indicating a 56% increase.

Company Details

RIL's Financial Performance and Projections

Bullish outlook is driven by declining capex and increased returns from newer businesses like retail and new energy.

RIL's consolidated returns are poised for growth in FY24, with CROCI expected to expand to 12% by FY27.

Key Factors Driving RIL's Growth

Telecom business expected to generate strong free cash flow post 5G rollout and potential tariff hikes.

Positive outlook for RIL's EBITDA expansion, driven by energy business and retail segment growth.

Future Prospects and Potential Value Unlocking

GS anticipates rising returns and potential value unlocking through stake sales in consumer businesses.

Reliance Retail's share in EBITDA is to increase, while positive EBITDA is expected from New Energy by FY25.

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