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Goldman Sachs Lowers Reliance Industries’ Target Price: Key Insights and Projections
Goldman Sachs Lowers Reliance Industries’ Target Price: Key Insights and Projections
The target price for Reliance Industries Ltd. (RIL) has been reduced by the global brokerage Goldman Sachs from Rs 1,630 to Rs 1,595. The firm’s “buy” rating for the global corporation remains unchanged despite the adjustment, suggesting a potential 26% gain in value over Wednesday’s closing price of the shares. According to a letter from Goldman Sachs, the current sell-off in RIL shares seems excessive. It stated, “The share price is currently close to our bear case scenario.”
Challenges Highlighted by Goldman Sachs
A number of issues that might affect RIL’s success were highlighted by Goldman Sachs. The delayed realization of the company’s return inflection thesis is one of these; it is taking longer than expected. Despite an expected 5% successive improvement, the business extends that RIL’s EBITDA for the October-December quarter (Q3 FY25) would basically remain level year over year. The business has likewise made a 4% negative modification to its EBITDA projections for monetary 2025 to financial 2027.
Optimism for Fiscal 2026
Goldman Sachs is still hopeful about RIL’s return expansion in fiscal 2026, despite the short-term difficulties. With Jio, a telecom subsidiary, performing well, it expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to climb by 24% annually.
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Other Brokerage Perspectives
Morgan Stanley has kept its “overweight” rating on RIL, predicting a 34% increase in value with a revised target price of Rs 1,662. The brokerage has high hopes for RIL’s future performance, pointing to things like increased retail profitability, the company’s 2025 cash flow production from new energy initiatives, and the uptake of more refining capacity. According to Morgan Stanley, RIL’s EBITDA would improve by 4% sequentially in Q3 of FY25, but it will stay unchanged year over year. The company blames this on tight global gasoline markets and telephone rate increases, which should increase profitability. Bernstein, meanwhile, has given a target price of Rs 1,520 for RIL, suggesting a possible upside of 25%.
