1 hr ago

Three catalysts could drive Reliance Industries stock rerating soon

Reliance Industries’ shares have fallen this year.

Analysts believe several developments could make investors value the company more highly.

First, shortages of diesel and jet fuel may keep refining profits unusually strong.

Reliance could benefit because its export-focused refinery is exempt from a special tax.

Second, the planned Jio IPO could show that the telecom business is worth a lot.

A possible 15% increase in telecom prices could also improve Jio’s earnings.

Third, Reliance is expected to start large solar and battery projects in 2027.

The company’s retail business is still considered its main weakness.

Key facts

Share performance: Reliance Industries shares are down 19% this year, according to the article.
Expected blended GRM: The brokerage expects Reliance’s blended gross refining margins to remain above $15 per barrel, versus a normalized level of about $10.
Refining outlook: The middle-distillate shortage is expected to support refining margins for the next 12–18 months.
Jio implied equity valuation: The Jio draft red herring prospectus implies an equity valuation of approximately Rs 12.5 lakh crore.
New-energy commissioning: Reliance is expected to begin commissioning 20 GW of solar capacity and 40 GW of battery capacity from January 2027.
Planned Kutch facility: Reliance plans to develop a 22 GW solar power facility in Kutch over the following two years.
Main weakness: Retail remains Reliance’s key weak spot, although expectations for the business have moderated.

businesstoday.in · 6 hrs ago