Reliance Industries chosen as 'Stock of the Week'

Kotak Securities has named Reliance Industries (RIL) as its 'Stock of the Week' and has given it a 'Buy' rating with a target price of ₹1,400. This target suggests a potential rise of about 10% from its latest closing price. The brokerage cites strong growth in RIL's retail business and positive prospects for its telecom division as key reasons for this outlook. Despite a 20% drop from its peak, Kotak believes RIL's retail operations will see significant growth in the coming quarters. They expect RIL to add around 60-70 lakh square feet of retail space in FY26/27, which could greatly enhance its market presence. Additionally, the company's Jiomart is taking a strategic approach to quick commerce, potentially boosting its competitive edge further. Kotak also highlights the importance of anticipated IPOs in the telecom sector and possible tariff increases, which could enhance RIL’s profitability. They forecast that net store additions will accelerate starting in FY26, adding to the company's growth momentum. Earnings forecasts remain strong with a projected 16.6% growth in earnings per share (EPS) for FY26 and 17.4% for FY27, driven by expansion across its business operations. RIL’s stock price has fallen over 12% in the past year and is currently trading more than 20% below its all-time high of ₹1,608.95, reached in July 2024. In recent weeks, the stock has shown signs of recovery, rebounding by more than 8% in March after a decline in February. For Q3FY25, RIL reported a net profit of ₹18,540 crore, up 7% from the previous year. Its revenue rose 6.7% to ₹2.40 lakh crore, with EBITDA increasing by 7.7% year-over-year. Investors are advised to consult certified experts before making investment decisions.