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JP Morgan Maintains Overweight Rating on RIL, Cites Positive Outlook

Geetanjali Lachke

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.

JPMorgan's View on Reliance Industries

  • 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.

Key Reasons for Optimism

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.

  • Consumer Business Growth: The significant expansion of Jio and Retail is projected to be more impactful on the company’s bottom line, thereby supporting long-term stock performance.

Reliance Industries' Recent Stock Performance

  • 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.

  • Year-to-Date Performance: In 2025, Reliance's stock has appreciated by over 17%.

Key Metrics

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.

Disclaimer

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

Hi! I’m Geetanjali Lachke
Financial Content Specialist

Geetanjali is an emerging content writer with a passion for writing and marketing. She focuses on crafting clear, engaging blog posts and articles that simplify complex topics, particularly in finance and business. Geetanjali is dedicated to delivering insightful content that helps readers understand and navigate critical concepts, empowering them to make informed decisions and stay ahead in the ever-evolving landscape of finance and business.

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