Motilal Oswal Initiates BUY on RIL, MSIL, and Jio Financial Services with Notable Upside

Motilal Oswal has issued BUY calls on Jio Financial Services, Maruti Suzuki India, and Reliance Industries. The brokerage outlined target prices that imply gains of up to nearly 38% from current market prices. The note covered stock valuations, operating factors, and longer-term business drivers across financial services, autos, and energy.

The calls come with stated upside potential of 26.62% for Reliance Industries, 37.97% for Maruti Suzuki, and 35.68% for Jio Financial Services. These estimates are based on Motilal Oswal’s valuation models and segment views. Prices cited are the CMP levels mentioned in the brokerage commentary for each company.

Stock	CMP (Rs)	Target Price	Potential Upside
Reliance Industries (RIL)	1,382.10	1,750	26.62%
Maruti Suzuki India (MSIL)	12,615	17,406	37.97%
Jio Financial Services (JIOFIN)	235.85	320	35.68%

"We value the O2C/E&P segments at 7.5x/5.0x FY28E EV/EBITDA to arrive at an enterprise value of INR5.7t (or ~INR420/sh) for the standalone business. We ascribe an equity valuation of INR590/sh and INR560/sh to RIL's stake in JPL and RRVL, respectively. We assign INR174/sh to the New Energy business, INR30/share equity value to RCPL, and INR26/sh to RIL's stake in JioStar. We reiterate our BUY rating with a TP of INR1,750," said the research analysts of Motilal Oswal in a statement.

Motilal Oswal BUY rating on Maruti Suzuki: Auto Index gap and earnings view

Motilal Oswal linked Maruti Suzuki’s recent relative weakness to concerns after GST rate cuts. The brokerage also referred to worries around a softer 3Q outcome. Maruti Suzuki shares have fallen 12% in six months. The stock trailed the Auto index by over 9% in that period.

"MSIL has underperformed the Auto Index post GST rate cuts largely on concerns of a weaker than expected performance in 3Q. We believe these concerns are overstated, as we expect MSIL to outperform the industry in FY27 and beyond once its near-term capacity constraints are resolved, supported by its robust product launch pipeline. Overall, we factor in MSIL to post 16% earnings CAGR over FY25-28E, largely back-ended. We reiterate our BUY rating on MSIL with a TP of INR17,406, valued at 26x Dec'27E EPS," commented the research analysts of Motilal Oswal.

Motilal Oswal BUY rating on Jio Financial Services: platform build-out

"JIOFIN represents a long-term platform opportunity in India's evolving financial services landscape, supported by strong parentage, a robust balance sheet, and access to a large digital and consumer ecosystem. Near-term earnings and return metrics are likely to remain constrained as operating franchises are built across lending, asset and wealth management, and payments and insurance (broking and manufacturing). However, parallel scaling of multiple businesses, anchored in digital-first distribution, capital discipline, and selective partnerships, provides meaningful medium-to-longterm optionality," commented the research analysts of Motilal Oswal.

"JIOFIN offers a compelling long-term growth runway, supported by the breadth of its financial services platform and multiple embedded value-creation levers. While current valuations reflect a part of the medium-term growth potential, we believe they do not fully capture the scale opportunity across lending, asset management, insurance, and digital financial services as these businesses transition from incubation to meaningful profitability," they further added.

Commenting on the target price, the research analysts of Motilal Oswal said, "JIOFIN trades at 1x FY27E P/BV. We model consolidated PAT CAGR of 48% over FY26-FY28 and initiate coverage on JIOFIN with a BUY rating and TP of INR320 (based on Mar'28E SoTP). Our SoTP does not factor in valuation from businesses like Insurance manufacturing, Wealth management, broking, and marketplace, which are still in their incubation phase."

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