RIL shares reclaim Rs 1,400 mark ahead of Q2 earnings today; buy, sell or hold?

Shares of Reliance Industries Ltd (RIL) reclaimed the Rs 1,400 mark after 16 sessions ahead of the conglomerate's Q2 earnings set to be announced today. Reliance Industries shares, which have gained 27% from their 52-week low, rose 1.5% to Rs 1,417.80 on NSE in early deals today. Market cap of the firm stood at Rs 19.17 lakh crore. 

RIL stock has gained 4.38% in a year and risen 20.23% in two years. The stock has a beta of 1.2, indicating high volatility in a year.  

The stock fell to a 52-week low of Rs 1115.55 on April 7, 2025 and reached a record high of Rs 1551 July 9 this year. 

In terms of technicals, the relative strength index (RSI) of RIL stock stands at 57, signaling it's trading neither in the oversold nor in the overbought zone. RIL shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

Brokerage Investec has initiated coverage on the large cap stock with a buy call at a target price of Rs 1890. 

The brokerage believes that RIL is entering a phase of broad-based earnings recovery & strong cash generation.

It expects Group EBITDA to double by FY27 vs FY22, as guided at 2025 annual general meeting. 

According to the brokerage, growth will be broadbased: Energy should rebound on back of constructive refining margins, new petrochemical capacity, & stable upstream earnings. 

Non-energy growth will be backed by a robust 14% revenue CAGR in Retail and consistent ARPU-led expansion in Jio. 

At 18.8x FY27E P/E, the RIL stock trades at a 15% discount to its 2018-25 average valuation, said Investec. 

Terming RIL as one of India’s most attractive large-cap risk–reward opportunities, the brokerage cited improving free cash flow, rising returns, & multiple value unlocking catalysts including potential subsidiary IPOs behind its bullish stance 

RIL offers a compelling blend of cyclical recovery & structural growth, added Investec. 

Global Brokerage Morgan Stanley has a price target of Rs 1,701 on the large cap stock. 

The brokerage believes anti-involution & AI to redefine equity story for the company. 

According to Morgan Stanley, the company is the largest beneficiary of China’s anti-involution across energy & solar industry. 

Brokerage Citi has price target of Rs 1,690 on the RIL stock.

Reliance Industries shares offer a compelling risk-reward proposition, with either Jio or Retail units valued at a 15% discount, according to global brokerage firm Citi.

"Our scenario analysis suggests that at current price levels, RIL presents a compelling risk/reward proposition, evidenced by Jio’s implied valuation now at a 15–25% discount to Bharti, or alternatively, the implied valuation of Retail is now 15% below that ascribed in the last PE transactions two years ago," Citi analysts wrote in a report.