Reliance Industries Ltd (RIL) shares will be in focus on Thursday ahead of the company’s 48th Annual General Meeting (AGM), where Chairman Mukesh Ambani is set to address nearly 44 lakh shareholders.
Reliance AGM is scheduled for Friday, August 29, with market participants keeping expectations modest amid heightened global geopolitical tensions and the recent US tariffs on India.
US President Donald Trump has imposed an additional 25% tariffs on India for importing Russian crude oil. RIL, one of the country’s largest consumers of Russian crude, is directly impacted by the move.
Investors will be watching closely for Ambani’s comments on crude sourcing, along with potential updates on the long-awaited IPO of its telecom arm Jio, and the company’s strategy for leveraging artificial intelligence (AI) across its businesses.
Reliance share price has gained nearly 14% in 2025 so far, sharply outperforming the benchmark Nifty 50’s 4.5% rise. Despite this rally, analysts believe Reliance Industries’ valuations remain attractive and continue to maintain a positive outlook on the stock.
Analyst Views on Valuations
According to JPMorgan, RIL still appears inexpensive on two counts:
Holding company discount: The implied discount has narrowed only marginally in 2025, as valuations for peers Bharti Airtel and Avenue Supermarts (DMart) have also risen, preserving RIL’s relative value proposition.
Retail valuations: Reliance Retail’s implied EV/EBITDA multiple continues to trade at a wider discount to DMart, even after adjusting O2C at 7.5x EBITDA and valuing Jio at Bharti’s multiples.
JPMorgan highlighted improving commodity spreads, potential telecom tariff hikes, festive season demand, and possible GST cuts as near-term stock drivers.
“RIL is likely to deliver a better two-year EPS CAGR, given limited further downside to O2C. With comfortable relative valuations, this could help the stock perform. Some of the recent correction is possibly on account of its Russian oil purchases and risks of US/European action. The stock could recover if these issues abate,” JPMorgan said.
JPMorgan has an ‘Overweight’ rating and Reliance share price target of ₹1,695 apiece for September 2026.
Business Performance and Outlook
RIL’s annual report showed capitalized costs rising 48% YoY to $5.7 billion, with consolidated capex steady at $16.6 billion – driven by Jio ($5.4 billion) and standalone operations ($4.4 billion). Consolidated operating cash flow (OCF) rose 10% YoY to $20.9 billion, aided by lower working capital, with an OCF/EBITDA conversion of 108%. Jio reported free cash flow (FCF) of $1.8 billion, while Retail reported $0.66 billion.
Jefferies, in its base case, forecasts robust growth across businesses:
Jio: 22% EBITDA CAGR over FY25-28E
Retail: 14% EBITDA CAGR over FY25-28E
O2C: 11% EBITDA CAGR over FY25-28E
It values O2C at 8x EV/EBITDA, India mobile at 13x, and core offline Retail at 28x, assigning a target price of ₹1,670 with a ‘Buy’ rating for Reliance Industries shares.
CLSA factored in a one-off gain from the Asian Paints stake sale, raising FY26/FY27 EPS by 10%/1%, but retained its ‘Outperform’ rating with an unchanged target price of ₹1,650.
“The annual report emphasised the scale-up of AI services with connectivity offerings, expanding media offerings and the integration of new energy value chains as key focusses for RIL. Any indications on the Jio IPO at the upcoming AGM will be a key catalyst, along with its FMCG expansion plan and clarity on its AI strategy,” CLSA said.
On Tuesday, Reliance share price ended 1.95% lower at ₹1,385.30 apiece on the BSE.