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Reliance Industries Ltd. (RIL), one of India's largest and most influential conglomerates, has garnered attention following an update by global brokerage firm JPMorgan. The firm has reaffirmed its 'Overweight' rating on Reliance shares, with an optimistic outlook for the company’s earnings growth in the coming years.
Rating: JPMorgan maintains an 'Overweight' rating on RIL's stock.
Target Price: The brokerage has set a target price of ₹1,568 per share, a 10% upside from its closing value on June 5, 2025.
Earnings Outlook: JPMorgan expects stronger earnings for Reliance in the next two years, particularly driven by growth in its consumer businesses, including Jio (telecom) and retail.
JPMorgan believes that despite the stock facing some pressure due to earlier earnings downgrades, largely stemming from weaker commodity earnings before interest and tax (EBIT), this trend is unlikely to persist. With margins already low in the commodity segment, the brokerage expects better profitability moving forward.
JPMorgan’s report highlights several factors contributing to its positive stance on Reliance Industries:
Recovery in Earnings: The previous weakness in commodity margins is not expected to continue.
Price Correction: Shares of RIL corrected by 12% from their recent peak of ₹1,608.
Recent Trading Price: On June 5, 2025, RIL shares were trading at ₹1,429, a 0.41% gain from the previous day’s close.
The table below illustrates the key stock metrics for Reliance Industries.
Metric |
Details |
|---|---|
Current Stock Price |
₹1,429 |
Target Price |
₹1,568 (10% upside) |
Price Correction |
12% decline from peak of ₹1,608 |
YTD Performance |
+17% increase in 2025 |
JPMorgan’s bullish outlook for Reliance Industries highlights its confidence in the company’s ability to recover and grow, particularly in its consumer-facing sectors such as telecom and retail.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
CNBC TV18: https://www.cnbctv18.com/market/reliance-industries-share-price-will-see-better-earnings-for-next-two-years-jpmorgan-says-19615872.htm
Economic Times: https://economictimes.indiatimes.com/markets/stocks/news/jp-morgan-stays-overweight-on-ril-cites-better-outlook/articleshow/121661312.cms?from=mdr
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