Reliance Outlook: Reliance’s shares fell about 5 percent today. However, analysts are still bullish on the stock due to strong growth in Reliance Retail and Jio Telecom.
Reliance Outlook: Stock markets around the world are seeing pressure due to the war between Russia and Ukraine. Its effect was also visible on the Indian stock markets and the shares of Reliance, the country’s largest company by market capital, today (February 24) lost about 5 percent and 8 percent in the last five days. However, analysts are still bullish on the stock due to strong growth in Reliance Retail and Jio Telecom. Market experts believe that its share price can jump by about 26 percent from the current price. Today it has closed on BSE at a price of Rs 2255.60.
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Market experts fixed this target price
Recently, its foreign brokerage firm Bernstein and domestic brokerage firm JM Financial have released their reports. While Bernstein analysts have called Reliance Retail the king of the Indian retail industry in their report, JM Financial expects Reliance Jio to firmly capitalize on the huge digital opportunity from the Indian digital market. Bernstein on the basis of his analysis has given outperform rating to the stock at a target price of Rs 2830 per share while JM Financial has given a buy rating with a target price of Rs 2815 per share i.e. the target price is achieved from the current price. But there will be a profit of about 26 percent.
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Country’s largest organized retailer Reliance Retail
According to Bernstein, the business of Reliance’s retail unit has increased since the start of the Corona epidemic and it has added many brands to itself. According to analysts, between the financial year 2022-25, Reliance Retail can grow at a CAGR of 30 percent (Compound Annual Growth Rate). The retail arm of Mukesh Ambani-owned Reliance is the country’s largest organized retailer in terms of revenue and store network. It has more than 14 thousand stores spread over 40 million square feet across the country. Its revenue has increased five times in the last five years. There are many brands in Reliance Retail’s network including Dunzo, Milk Basket, Jiomart, Ajio. Apart from this, it has offline retail stores like JioPhone Next and Just Dial in its network.
Jio to benefit the most from the growing digital market
According to JM Financial, the digital market in India is expanding rapidly and Jio can take advantage of it. Jio has 416 million telecom subscribers and has stakes in several digital platforms. Apart from this, Jio is also offering many apps, due to which the company has been successful in connecting the subscribers. According to analysts at JM Financial, Jio is best positioned to take advantage of digital monetization as it has stakes in multiple digital/tech platforms. India’s digital market can grow 4 to 5 times to $ 1 trillion (Rs 75.61 lakh crore) by the financial year 2024-24. Jio’s digital assets are about $ 1500 million (Rs 1.13 lakh crore).
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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