Goldman Sachs raises Reliance Industries stock target price with ‘buy’ rating, sees 54% upside

Goldman Sachs cited favorable factors such as the expected value accretion from the Reliance-Disney joint venture.

Brokerage firm Goldman Sachs predicted a potential upside of as much as 54% for shares of Reliance Industries (RIL) based on bull case scenario estimates for the financial year 2026. Goldman Sachs projected RIL’s share price to reach ₹4,495 and maintained its “buy” recommendation on Reliance Industries, revising its price target on the stock to ₹3,400 from ₹2,925. This target suggests a substantial upside of 17% from the closing price recorded on March 26.

Goldman Sachs on Reliance: The logo for Goldman Sachs is seen.(Reuters)

For its prediction, Goldman Sachs cited favorable factors such as the expected value accretion from the Reliance-Disney joint venture.

What Goldman Sachs anticipates for RIL?

Goldman Sachs anticipates that RIL’s consolidated returns will be at an inflection point in the financial year 2024. The firm also highlighted a shift in RIL’s investment focus towards less capital-intensive ventures such as Retail and New Energy.

Projecting major growth in Reliance Retail’s Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), Goldman Sachs said that it could nearly double between financial year 2024 and 2027, with a corresponding increase in consolidated EBITDA.

The brokerage firm also foresees a turnaround in free cash flow by financial year 2025 as it expects capital expenditure to peak in the preceding financial year and predicted a 20% year-on-year expansion in EBITDA, owing to factors including a telecom tariff hike, higher retail same-store sales growth, and improved chemical margins.