Reliance shares traded over a percent higher on December 19 as analysts expected an additional upside of up to 20% with an eye on the conglomerate’s consumer businesses and premiumisation plan.
Switzerland-based brokerage UBS, with a buy rating, has raised the target price on RIL shares to ₹3,000, which means it expects the stock to see a rally of more than 19% from the December 18 closing price. Its American peer Morgan Stanley, meanwhile, has set the target price at ₹2,821 and has an overweight call on the stock.
UBS believes that the Mukesh Ambani-led conglomerate’s consumer businesses are in focus and that leverage concerns are overdone. The consumer business segment could contribute around 85% of incremental EBITDA over FY23-26 (versus only around 40% over FY21-23), taking their share in segment earnings before interest, taxes, depreciation, and amortisation (EBITDA) from 49% in FY23 to 58% in FY26.