This rise in the shares of Reliance Industries is being seen after the brokerage firm CLSA upgraded the rating and target price.
The share price of Reliance Industries jumped more than 2 percent to reach a high of Rs 2,386.95 on Monday. This rise in the shares of Reliance Industries is being seen after the brokerage firm CLSA upgraded the rating and target price. The international research firm has given a Buy rating to Reliance Industries and has increased the target price from Rs 2,850 to Rs 2,955.
The rating agency said in its note, “After the sharp fall, the company is now within 15 per cent of our conservative value. It’s a good entry point.” RIL’s stock has gained more than half a percent in the last one month. At the same time, it has climbed more than 25.73 percent in the last one year. Going forward, the stock may rise by about 27 percent. At the time of writing the report, Reliance Industries is trading at Rs 2,398.95 with a gain of Rs 63.10 or 2.70 per cent in BSE.
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What the brokerage firm said
CLSA said in its note, “We believe that Reliance is at a good entry point. In the last 18 months, Reliance Jio has seen huge tariff hikes, industry consolidation, progress in broadband and a positive momentum in the company’s technology efforts.” The firm further said, “Since the stake sale in mid-2020, retail has grown as a major O2O player. These include 35% increase in selling area to 40m sq ft, 20x expansion in merchant partnerships under Jio Mart grocery, doubling of order number and frequency from Jio Mart, 3x growth in online product assortment and merchants in Jio Mart Digital Including the beginning of the partnership. The firm further said, “Due to the massive rerating in multiples, the EV of the listed retail players has almost doubled in the last 18 months.”
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Brilliant December quarter results
CLSA has given Buy rating to RIL with a rise of 27%. According to CLSA, going forward, the IPO of Jio and Retail can prove to be a big trigger in the next two years. The Mukesh Ambani-led company had announced strong quarterly results on January 21. The company’s third quarter net profit jumped 41.5%. With this, the company has achieved a profit of Rs 18,549 crore in this quarter. The company’s revenue grew 52% year-on-year to Rs 1.95 lakh crore in the October-December quarter. The company said that the company’s quarterly results were excellent due to strong performance in refining, telecom, retail and E&P (exploration and production) businesses.