Shares of Mukesh Ambani-led Reliance Industries Ltd (RIL) have not moved much after the conglomerate unveiled grand plans for the telecom sector and detailed a layout for expansion in segments such as oil, retail and digital during its Annual General Meeting (AGM) in August-end. The stock which closed at Rs 2,618 on August 26, Friday was trading at Rs 2,599 in the afternoon session today. The AGM of RIL was held on August 29 (Monday) this year. In fact, the stock has fallen 0.72 per cent or Rs 19 during the period.
Reliance Industries stock is a high beta one which means it rises or falls more in comparison to benchmark indices Sensex or Nifty. Currently beta value for RIL in relation to Sensex and Nifty is 1.18.
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However, the stock has lagged behind Sensex and Nifty in terms of returns since the AGM on August 26. During the same period, Sensex has gained 2.17 percent or 1,282 points. Nifty was trading at 60,115 today against the close of 58,833 on August 26. Similarly, Nifty has climbed 2.15 per cent or 378 points during the period. Nifty was trading at 17,936 today against the close of 17,558 on August 26. This indicates interest of investors is waning toward the RIL stock in the last two weeks.
In today’s trade, RIL stock ended 1.13 per cent or Rs 29 higher at Rs 2,597 against the previous close of Rs 2,568.60. RIL shares stand higher than the 5-day, 50-day, 100-day and 200-day moving averages but lower than 20-day moving averages. RIL share has gained 7.1 per cent in one year and risen 9.69 per cent since the beginning of this year. Total 1.52 lakh shares of the firm changed hands amounting to a turnover of Rs 39.48 crore on BSE.
Market cap of the conglomerate rose to Rs 17.58 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2,181 on March 8, 2022.
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Despite almost flat movement in the RIL stock since last AGM, analysts see rising investor interest in the shares of the India’s largest conglomerate by market cap. Here’s a look at what they said.
Vinit Bolinjkar, Head of Research, Ventura Securities
“Post-acquisition of 5G spectrum for Rs 88,000 cr, Jio is all set to launch services in metro cities of Delhi, Mumbai, Chennai, and Kolkata by Diwali this year besides expanding services pan-India by Q3FY23. RIL already has a very large offline footprint pan India, with 15,000 plus stores spanning 42mn sqft, and is now rapidly growing the online part of the segment as well, with the digital platform seeing 4.5 bn visits in FY22. The company also plans to triple vinyl capacity 0.8 MTPA in FY22 by adding 1.5 MTPA capacity in stages by CY26E and incremental contribution margins can be Rs 7,977 crore. We believe that the company will be able to get the fruits of its current capex, which will lead to the target of Rs 2,798 (23.5X FY24 EPS).”
Ravi Singhal, CEO, GCL
“RIL appears to be a good buy at this price. After a long period of consolidation, target of Rs 3,000 will be achieved in 3 to 6 months. 5G deployment, FMCG, Retail, Petrochemicals: All anticipate increased demand in the future.”
Manoj Dalmia, founder and director, Proficient Equities
“The stock looks sideways considering the price action. The stock can rise from current levels considering the news of decrease in crude oil prices. The short-term price target is Rs 2,718. Any closing below Rs 2,531 can trigger selling.”
Santosh Meena, Head of Research, Swastika Investmart
“On the weekly time frame of Reliance, a counter is moving in the triangle formation, and on the longer time frame, it is moving in the upward-sloping channel. It is trying to form a base at around Rs 2500 level. The overall structure is mediocre and once it will cross the level of Rs 2,700, we can expect a run-up towards Rs 3,000 plus level in the shorter to long term.”
Pavitraa Shetty, co-founder & trainer, Tips2Trades
“Despite bearish sentiment across global markets, Indian market indices have been resilient led by Reliance Industries. Rs 2,500 remains a strong immediate support. A daily close above Rs 2,690 could lead to higher targets of Rs 2,820- Rs 2,900 in the near term.”
