Reliance Industries share price rose 2% on Tuesday, extending its gaining streak for the fourth consecutive trading session, lifted by strong buying momentum. Reliance shares rallied as much as 2% to ₹1,333.35 apiece on the BSE.
Reliance share price gained nearly 6% in four sessions, amid a rally in the broader Indian stock market on optimism over the US-Iran peace deal and the reopening of the Strait of Hormuz, a key global crude oil transit route.
However, Reliance Industries share price has materially underperformed the broader market since January 2026, correcting over 15% as against an 8% decline in Nifty 50, rare divergence for a stock of its benchmark significance during the earnings upgrade cycle.
Analysts at Equirus Securities believe the recent derating has made valuation metrics more attractive, with Reliance Industries’ forward price-to-earnings (P/E) ratio compressing to around 19x, compared with its historical average of nearly 21x. Its EV/EBITDA multiple has also moderated to approximately 9.9x, falling below the minus one standard deviation (-1SD) band and approaching multi-year trough levels of nearly 9.6x.
“Reliance’s valuation mix has undergone a structural shift, yet the market continues to value it like a refining-heavy conglomerate. Telecom and retail now account for more than 65% of our enterprise value (EV) estimate, while the oil-to-chemicals (O2C) business, historically a key valuation anchor, has structurally declined to around 22%,” Equirus Securities said.
The brokerage firm expects Reliance Industries’ consolidated EBITDA to compound at ~7% over FY26–28E driven almost by Telecom (11% CAGR) and Retail (13% CAGR), with O2C contributing incremental recovery (7%).
It believes the downside risks are largely priced in, while catalysts for re-rating are emerging, including improving O2C profitability, value unlocking in Jio, resilient Retail growth and new energy projects will start contributing in next few quarters.
“Medium-term underperformance, near term positive earnings surprise in O2C and valuation near to post COVID low make the risk-reward equation favourable,” said the brokerage firm.
Consequently, Equirus Securities upgraded its rating on Reliance Industries to ‘Long’ from ‘Add’ with September 2027 target price of ₹1,586 apiece.
Meanwhile, foreign brokerage firm Morgan Stanley maintained an ‘Overweight’ rating on Reliance Industries shares with a target price of ₹1,803 apiece, reports said. Reliance Industries stock is among its top picks.
Reliance stock is trading at 1.1x EV to invested capital, a 68% discount to domestic peers across verticals, similar to 2018 levels before significant outperformance, the brokerage house said.
Morgan Stanley anticipates RIL’s oil-to-chemicals business’ earnings to remain supported despite higher logistics costs, and believes the company is well placed on heavy and sour crude processing and diversified sourcing.
The brokerage firm also expects the chemical cycle recovery, aided by advantaged feedstocks through US ethane and captive naphtha, to lift Reliance Industries’ earnings by 6-8% this year, reports said.
Technical Outlook
Reliance Industries share price has consolidated in a broad range in the last couple of years.
“In the consolidation, the weekly 200-EMA has acted as a support and post the recent correction, prices are trading near this support. Thus, the risk reward ratio seems favorable here for investors,” said Ruchit Jain, Head, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services.
According to him, the immediate support for Reliance shares is placed around ₹1,250 level.
At 12:20 PM, Reliance share price was trading 1.60% higher at ₹1,328.05 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
