UBS expects Reliance Industries' share price to surge to this level...

Swiss brokerage firm UBS has revised its price target on Reliance Industries Ltd, the prominent constituent of the Nifty 50 index and headed by Mukesh Ambani, from 3,000 rupees to 3,400 rupees per share.

The firm has reaffirmed its "buy" recommendation for the conglomerate. UBS anticipates a positive shift in Reliance Industries' earnings trajectory after consecutive downward revisions of 19% and 27% over the past two years.

The brokerage has also increased revenue and EBITDA estimates for the core retail business by 1% and 4% and 1% and 6% respectively over the financial year 2024 - 2026 due to a gradual improvement in discretionary spending, favourable raw material prices and a focus on driving premium products in grocery stores.

"Reliance Retail is well placed to tap India’s long-term retail opportunity given its retail expansion, differentiated product portfolio, and launch of consumer-centric formats," UBS wrote in its note.

UBS also expects Reliance Industries to reduce its debt by nearly $10 billion over the next two years as better earnings could generate enough cash to fund capex.