Motilal Oswal Advises Buying Reliance Industries Stock, Targets Rs 1750

Reliance Industries (RIL) Research Report

Key Highlights

• The recent blockade of the Strait of Hormuz and refining capacity disruptions have lifted gasoil, gasoline, and jet fuel cracks to USD42, USD16, and USD58 per bbl, respectively, in March 2026.
• These cracks are 147%, 40%, and 124% above their long-term averages, driven by decade-high crude freight rates and refined product export restrictions in China.
• We expect supply chain normalization to lag, even if tensions ease soon, keeping product cracks elevated and supporting RIL's refining and petrochemical margins.

Outlook and Recommendation

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

We have assigned the following values to Reliance Industries' businesses:

• INR174 per share to the New Energy business
• INR30 per share equity value to Reliance Capital Private Limited (RCPL)
• INR26 per share to RIL's stake in JioStar We reiterate our BUY rating with a target price of INR1,750 per share.