Shares of Reliance Industries (RIL) rose 1.5 per cent on Thursday, 20 November, extending gains in two of the past four sessions after global brokerage UBS reiterated its ‘Buy’ rating on the stock with a target price of Rs 1,820.
UBS said it expects a recovery in the conglomerate’s oil-to-chemicals (O2C) earnings, supported by stronger refining trends.
The brokerage noted that Singapore benchmark margins are not fully reflecting the profitability of diesel-heavy refiners such as Reliance, adding that the company’s diversified crude sourcing strategy continues to shield its margins from geopolitical volatility.
The brokerage forecasts that Reliance’s O2C EBITDA will rise from Rs 29,500 crore in the first half of FY26 to Rs 34,000 crore in the second half, before climbing further to Rs 64,800 crore in FY27.
Reliance remains a favourite among analysts, with 36 of the 38 covering the stock maintaining a ‘Buy’ recommendation.
RIL shares traded 1.38 per cent higher at Rs 1,539.90 on the National Stock Exchange (NSE). |
