Reliance Industries (RIL) shares have fallen around 23% since their peak in July. This drop is mostly due to struggles in their retail business and tough times in refining profits. Major financial experts from Goldman Sachs and other big firms believe the current price of RIL shares doesn’t reflect their true value and see it as a great opportunity to invest. They think the shares are very cheap now, making them a better catch for the future, especially for those who want to make good earnings by 2025.
Here are some reasons why analysts are optimistic about RIL shares:
1. Affordable Valuation: RIL’s shares are priced conservatively compared to the general market, making them a solid choice for large investment portfolios. Given the potential for price increases, many hold a positive outlook.
2. Jio’s IPO Anticipation: Investors are excited about the possible IPO of Reliance Jio, which could happen later this year. This IPO could bring in around Rs 35,000-40,000 crore, making it one of the largest public offerings ever in India. This event could significantly boost RIL’s share values.
3. Expected Tariff Hikes: Jio has recently raised prices, which suggests they are planning more price increases soon. Analysts expect Jio to grow its revenue by as much as 19% in the next year, thanks to these hikes.
4. Retail Recovery: RIL’s retail arm has seen lower profits lately, but analysts believe it will bounce back starting in late 2025. They expect store openings to resume and profits to grow in the coming years.
5. New Energy Projects: RIL is working on solar and battery projects that will begin operations in 2025, which should attract more attention and investment.
6. Better Refining Earnings: RIL’s refining operations are doing well, with strong demand for their products, especially outside of China.
In summary, many experts think that now is a good time to buy RIL shares before their value goes up again.
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