Reliance Industries Ltd (RIL) has emerged as one of the top performers on the Nifty, staging a strong rebound from its April 2025 lows. The stock has surged over 30% since then, reflecting improving investor sentiment and confidence in the company’s strategic direction. Following its robust Q4FY25 results, RIL shares rallied another 5% the very next day, cementing its leadership in India’s energy and innovation transition.

Brokerage firm Nuvama has now upgraded RIL to a 'Buy' with a target price of Rs 1801, citing the company's promising foray into the solar module space and the transformative potential of its New Energy business.

Here are the key highlights from Nuvama’s latest analysis:

i) RIL has commenced external sales of its Heterojunction Technology (HJT) solar modules, which are already ALMM-approved (Approved List of Models and Manufacturers). These modules command over a 5% premium to traditional TOPCon modules, thanks to their superior efficiency of 23.1%. This positions RIL competitively in both domestic and export solar markets.

ii) The company’s current 10GW module and cell manufacturing capacity is expected to contribute Rs 38 billion to its FY25 profit after tax (PAT), accounting for approximately 6% of consolidated earnings. This is similar to how Tata Power's renewables business added significant heft to its profits in recent years.

iii) For context, Waaree and Premier Energies — other key players in the solar module space with 13GW and 4GW capacities respectively — have been valued at USD 10 billion and USD 6 billion. Given this benchmark, RIL’s cutting-edge HJT facilities could command an enterprise value of nearly USD 20 billion. Such a re-rating could trigger a valuation upgrade akin to what happened with the launch of Reliance Jio (RJIO) in 2017, which marked a major turning point in the conglomerate's history.

iv) Looking ahead, Nuvama projects that by FY30, RIL’s entire New Energy vertical — including further integration into upstream segments like wafers and polysilicon — could contribute over 50% to the company's consolidated PAT. This signifies a monumental shift in Reliance’s earnings structure, from hydrocarbons to green energy and renewables.

In short, Reliance’s transformation journey is accelerating with visible traction in its solar business, and Nuvama believes this unlocks massive value for shareholders. The brokerage sees the module manufacturing and broader New Energy platform as the next key growth engine for the conglomerate.

With strong investor appetite, a visionary long-term roadmap, and the backing of massive infrastructure rollouts, RIL seems well-positioned to replicate its telecom success story in the green energy space.

Disclaimer:
This article is for informational purposes only and is based on publicly available brokerage research and market data. It does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their financial advisors and do their own due diligence before making any investment decisions. The author and the blog are not responsible for any gains or losses arising from decisions made based on this content. Stock markets are subject to risks, and past performance is not indicative of future returns.