New Delhi [India], January 9 : Multinational investment banking company Goldman Sachs has given a "buy" rating on Reliance Industries, expecting a 26.1 per cent rise in share price in 12 months from now.
At Thursday's closing, shares of Reliance Industries Ltd were 0.7 per cent lower at Rs 1,256.8.
So far in 2025, they rose 3.33 per cent on a cumulative basis. Over the past 12 months, they declined 2.6 per cent on a cumulative basis. In the past five years, Reliance's shares gained 64 per cent.
Goldman Sachs believes the sell-off in Reliance shares (-) 15 per cent from October 2024 as against the (-) 7 per cent for BSE Sensex) is overdone.
It also expects Reliance's October-December core EBITDA to grow 5 per cent quarter-on-quarter but to remain largely flat year-on-year as strong telecom earnings growth is expected to be offset by weakness in energy and more muted retail growth.
"These challenges are already well known as management flagged that the streamlining/restructuring of operations will remain a drag on retail earnings through 4Q as well," read the Goldman Sachs report.
Going ahead in 2025-26, it expects EBITDA to grow 24 per cent and consolidated Cash Return on Capital Invested (CROCI) to expand 110/75 basis points in 2025-26/2026-27, driven by refining margins, another telecom tariff hike, retail top-line growth, the potential start of the new energy giga complex.