Reliance Industries Ltd. shares have a potential upside of 30% with triggers in place for 2025, according to brokerage firm CLSA, who maintained its bullish stance on the stock.

Shares of Reliance Industries have corrected over 20% from its recent peak of ₹1,608, adjusted for the 1:1 bonus issue of shares.

CLSA has maintained its “outperform” rating on Reliance Industries with a price target of ₹1,650. The brokerage said that the stock is now within 5% of what it calls “conservative value”, but triggers are in place for 2025 that project a 30% upside for the stock.

The brokerage wrote in its note that the excitement seen in recent listings of two Indian solar PV manufacturers – Waaree Energies and Premier Energies makes them believe that Reliance Industries’ soon-to-be launched solar PV gigafactory is a trigger that the market is ignoring.
Despite correcting from their post-listing peaks, shares of both Premier Energies and Waaree are up over 100% from their respective IPO prices.

During its September quarter results announcements, Reliance Industries mentioned that its New Energy Gigafactory is on track to commence production of Solar PV modules by the end of this year.

“With a comprehensive range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the New Energy business is poised to become a significant contributor to global clean energy transition,” RIL Chairman Mukesh Ambani had stated.

Using peer valuations, CLSA is valuing Reliance Industries’ Solar business at $30 billion and the overall New Energies business at $43 billion.

However, this is offset by a 2% to 7% cut to Reliance Industries’ financial year 2025 – 2027 consolidated Earnings Per Share (EPS) estimates and a reduction in the value of its retail business.

Shares of Reliance Industries ended 0.25% lower on Tuesday at ₹1,269.5. The stock has turned negative on a year-to-date basis so far, currently down 2% for the year.