Reliance Industries Share Price: Shares of Reliance Industries have lost 5 percent from Thursday 24 June to Friday 25 June. A day earlier, Mukesh Ambani announced his ambitious new energy plans, under which the company would invest Rs 75,000 crore in the next three years. Despite this, its shares are broken today. Analysts are considering the new energy business as the next big profitable business for Reliance Group, but looking at the share price, investors have not been able to believe this till now.
Talking about Friday, Reliance’s shares fell by 2.6 percent and fell to Rs 2097. This is the worst performance on the Sensex. Analysts are not only excited about the announcement of the new energy business, but are also positive about the new JioPhone and Jio’s additional investments.
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Analysts at Kotak Securities believe that Reliance’s new energy business will be supported by policy incentives. According to Kotak Securities, the proposed import duty of 25-40 per cent on solar PV cells and modules from April 2022 will encourage manufacturing of solar energy equipment in the country. According to analysts at Edelweiss, the expansion in retail and new energy sector is positive and the new energy sector is going to be the next big growth opportunity.
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Stock Outlook and Target Price
- Motilal Oswal: Brokerage firm Motilal Oswal has given it a Buy rating at a target price of Rs 2430 per share. According to analysts, the company’s intervention in the feature phone market and digital business will increase and revenue will increase. The company will also expand into the retail business.
- Kotak Securities: Kotak Securities has maintained an Ad Rating at the Fair Value of 2200.
- HDFC Securities: HDFC Securities rated ADD at a target price of Rs 2280. However, earlier the brokerage firm had set a target price of 2285. The brokerage firm believes that the stock is currently trading at 10.9x Mar-23E EV/EBITDA and 21.0x Mar-23E EPS.
- Edelweiss – Analysts at Edelweiss have given a hold rating. According to him, Reliance’s valuations similar to FAANG (Jio Platforms and Jio Retail) are misplaced as O2C (oil to chemical) and telecom business contribute 70 per cent to the total value of the company.
- MK Global: Brokerage firm Emkay Global has given it a hold rating and has increased the target price from Rs 2060 to Rs 2330 per share.
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(Article: Kshitij Bhargava)