Reliance seen gaining from refining margins and potential Jio IPO

what happened

CNBCTV18.com reports that Reliance Industries remains a preferred large-cap holding despite global uncertainty. Mayuresh Joshi, Director Research at Marketsmith India, said the company is supported by better refining margins, expansion in retail and the expected Jio IPO.

Joshi said the investment case for Reliance remains intact. In his view, the refining segment could benefit as gross refining margins (GRMs) improve, while the retail and telecom operations retain long-term growth potential. He also identified the anticipated Jio IPO as a possible additional catalyst for the shares. Continued expansion at Reliance Retail and Jio is expected to support earnings over the medium term.

Joshi was also constructive on Goodluck India following the company’s move to bring its defence subsidiary under the listed company. Defence is currently a small part of the business, but execution against a growing order book and operating synergies could lift revenue and margins over the next few years. CNBCTV18.com says the views expressed by investment experts belong to them and not to the website or its management, and advises readers to consult certified experts before making investment decisions.

why it matters

For markets, the comments identify refining profitability, Reliance Retail and Jio growth, and the potential Jio IPO as the main elements of the Reliance thesis. Goodluck India’s outlook is tied to order-book execution and synergies after the corporate restructuring.

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