📈 Reliance Industries Set for 16% Upside? CLSA, Citi Bullish on Jio & Retail
Brokerage majors CLSA and Citi have turned bullish on Reliance Industries Ltd (RIL), projecting a potential upside of up to 16%, driven by robust growth in its telecom and retail verticals. With India’s consumption economy booming and digital infrastructure deepening, analysts see RIL’s diversified business model as a key outperformer in the coming quarters.
🔍 What’s Fueling Analyst Optimism?
1️⃣ Jio's Strong ARPU and 5G Momentum
Citi highlights improving Average Revenue Per User (ARPU) for Jio, aided by premium plans and deeper 5G rollouts across urban and semi-urban India. CLSA believes Jio’s first-mover advantage in standalone 5G will allow it to gain market share and improve margins.
2️⃣ Retail Expansion Driving Footfall and Revenue
Reliance Retail continues to expand its reach with store additions, omni-channel integration, and strong consumer demand. Both brokerages cited margin resilience and supply chain efficiencies as positives.
3️⃣ New Energy & Petrochemicals Stability
While the O2C (Oil-to-Chemicals) segment remains stable, CLSA expects gradual improvement in global refining margins to support earnings. Citi also pointed to long-term upside from green hydrogen and solar ventures.
📊 Brokerage Targets
| Brokerage | Target Price | Implied Upside |
|---|---|---|
| CLSA | ₹3,200 | ~16% |
| Citi | ₹3,100 | ~12% |
| Current Price | ₹2,760 (approx) | - |
🧠 Expert Take
“Jio and Retail are positioned to deliver high growth in the near term, and O2C provides a cushion amid volatility,” – CLSA India
“Reliance’s diversified exposure makes it a defensive yet high-potential play for 2025,” – Citi Global
❓ FAQs
Q1: Why are analysts bullish on Reliance Industries?
A: CLSA and Citi highlight strong growth potential in Jio’s 5G rollout and Reliance Retail’s expansion, along with energy sector stability.
Q2: What is the Reliance Industries stock target by CLSA and Citi?
A: CLSA has a target of ₹3,200, while Citi sees it reaching ₹3,100, indicating up to 16% upside.
Q3: Is now a good time to buy RIL stock?
A: According to analysts, yes—especially for long-term investors focused on consumer, digital, and clean energy exposure.
Q4: How is Jio contributing to RIL’s stock performance?
A: Jio is seeing ARPU improvement and leading in 5G adoption, which is expected to boost revenue and profitability.
Q5: What are the risks to watch?
A: Potential risks include regulatory changes, global energy market volatility, and slower-than-expected monetization of green energy.
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Reported by Benny on June 25, 2025.
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