Goldman Sachs adds Reliance Industries to its APAC Conviction List citing 4 catalysts
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Goldman Sachs has added Reliance Industries Ltd to its Asia Pacific Conviction List, highlighting four catalysts that it believes could significantly boost the conglomerate’s earnings and valuation. The brokerage expects a sharp rebound in EBITDA growth, improved refining fundamentals, a retail turnaround, and a potential telecom tariff hike to drive upside in the stock. Nikhil Bhandari, analyst at Goldman Sachs, estimated Reliance’s EBITDA growth will accelerate to 16% in FY26 from just 2% in FY25. Bhandari also forecasted cash return on capital invested (CROCI) to expand by around 140 basis points to 11% in FY27, while noting that there is “limited room for further consensus earnings cut.” Four catalysts driving the upgrade The first catalyst cited by the brokerage is an improvement in refining fundamentals for RIL, driven by “favourable feedstock crude dynamics (wider light-heavy crude differentials) and tightening global refining supp...