Nuvama gives Reliance Industries highest Street target on solar push, stock up 2%

Mumbai, July 1, 2025 — Reliance Industries Ltd (RIL) surged 2% on Tuesday after brokerage firm Nuvama Institutional Equities assigned the highest street target to the conglomerate, citing the company’s aggressive foray into solar energy as a key long-term value driver. Nuvama raised its price target to ₹3,820, implying an upside potential of over 20% from current levels.

The stock touched an intraday high of ₹3,195 on the NSE, closing at ₹3,180, buoyed by investor enthusiasm over Reliance's increasing focus on its green energy vertical, including its Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat.

Solar Ambitions Fuel New Optimism

In its latest research note, Nuvama highlighted Reliance's "integrated approach" to building a solar manufacturing ecosystem, stating that it places the conglomerate in a “pole position” to benefit from India’s clean energy transition. The brokerage emphasized Reliance’s plans to become one of the world’s lowest-cost solar manufacturers through vertical integration across polysilicon, ingots, wafers, cells, and modules.

"We see Reliance’s clean energy initiative as the next big earnings and valuation catalyst, following its success in telecom and retail. The solar segment, particularly, is shaping up to be a ₹1.5 lakh crore opportunity over the next decade," said Deepanshu Sharma, Senior Analyst at Nuvama.

Reliance aims to establish 100 GW of solar energy capacity by 2030, which aligns with India's national renewable energy goals. As per the company’s annual report, ₹75,000 crore has already been committed towards green energy investments, with a significant chunk directed at the solar gigafactory.

Breaking Down the Target Hike

Nuvama’s upgraded price target of ₹3,820 reflects optimism not only on the solar business but also on sustained growth in core businesses — including oil-to-chemicals (O2C), telecom (Jio), and retail (Reliance Retail).

Here’s how Nuvama justifies the ₹3,820 valuation:

• ₹1,500: Oil-to-chemicals and traditional energy businesses

• ₹1,000: Telecom (Reliance Jio)

• ₹850: Retail

• ₹470: New Energy (solar, hydrogen, battery storage, etc.)

This valuation puts the solar and clean energy segment at nearly 12% of the total market capitalization, a significant jump from previous estimates of 6–7%.

"The shift in focus from cash-intensive traditional segments to high-multiple green businesses should drive a re-rating of RIL in the coming quarters," said Sharma.

Market Context and Peer Comparison

Reliance’s green ambitions are unfolding amid a growing focus on ESG (Environmental, Social, and Governance) compliance, with global investors increasingly favoring sustainability-linked investments. India has set an ambitious target of 500 GW of non-fossil fuel capacity by 2030, and private players are expected to play a major role.

Peers like Adani Green Energy, Tata Power, and ReNew Energy Global are also scaling up solar capacity, but analysts argue that Reliance’s edge lies in its deep pockets, end-to-end integration, and supply chain control.

"Reliance has moved beyond announcements and is executing at scale, which separates it from many domestic players," said Bhargav Das, independent energy consultant.

Investor Outlook: Is It Time to Buy?

With the stock gaining over 15% in the last three months and outperforming the Nifty 50, investor confidence appears to be building around the company's new energy roadmap. The stock’s valuation remains reasonable at 22x FY26 projected earnings, considering the multi-engine growth strategy in place.

For long-term investors, RIL’s solar and green energy push offers a strong ESG narrative coupled with capital appreciation potential.

However, analysts advise caution due to execution risks in high-tech manufacturing, global competition in solar module exports, and policy uncertainties in the renewable sector.

"Execution timelines and government policy clarity will be critical to realize full potential. But RIL has the capital and intent, which is half the battle won," noted Sharma.

Reliance Industries is reinventing itself again — this time as a clean energy behemoth. Nuvama’s bullish target of ₹3,820 signals growing institutional confidence in the company's strategy to dominate the green energy space, particularly solar manufacturing. While the journey may have its share of uncertainties, RIL’s scale, execution capability, and financial muscle make it a compelling long-term play for investors seeking both growth and sustainability.