Shares of Reliance Industries (RIL) shares have risen 5 per cent this year so far, marginally outperforming the Sensex’s 2.23 per cent rise during the same period. If one were to go by fundamental analysts, the stock has potential to gain up to 20 per cent in 2023. A technical analyst said levels of Rs 2,715-2,970 are likely in the coming weeks.
According to ICICI Direct’s research report, RIL’s consumer business would be the growth driver, going ahead. The brokerage has assigned a ‘Buy’ call on the counter with a target price of Rs 3,050 over a one-year period.
Reliance Retail’s recent acquisition of Metro would further strengthen its backend supply chain with accelerated growth in JioMart Kirana orders, the ICICI report stated. Superior spectrum portfolio along with superior digital ecosystem offering lends Jio a competitive advantage even in 5G, it added.
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Motilal Oswal Investment Services has given a ‘Buy’ with a potential upside of 12 per cent (Rs 2,875) in a year while expecting strong growth in the company’s retail segment.
The brokerage said Reliance Retail Ventures’ deal with Metro Cash & Carry India implied “a valuation of 0.4x EV/Sales and 22x EV/EBITDA on an FY22 basis, which is at a significantly better valuation compared to previous acquisitions in the grocery space at 1x EV/sales.”
On the technical front, the stock has support at Rs 2,490. Pavitraa Shetty from Tips2trades, said, “Reliance industries will now have strong support at Rs 2,490. A daily close below Rs 2,490 could lead to Rs 2,459 in the near term. Investors should buy only if the daily close is above Rs 2,590 for targets of Rs 2,715-2,970 in the coming weeks.”
RIL shares climbed today, halting a three-session fall. The stock rose 1.33 per cent to hit a day high of Rs 2,534.90 over its previous close of Rs 2,501.55.
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A total of 70,000 shares changed hands today. The turnover on the counter stood at Rs 17.61 crore on BSE. The company commanded a market capitalisation (m-cap) of Rs 17,10,982.53 crore.
On BSE, there were 1,93,116 buy orders against 44,474 sell orders. On NSE, 18.40 lakh shares changed hands with a turnover of Rs 463.74 crore.
At today’s high level of Rs 2,534.90, the oil-to-retail conglomerate has lost 11.21 per cent compared to its 52-week high of Rs 2,855, hit in April this year. That said, the stock has gained 16.23 per cent from its one-year low level of Rs 2,181, hit in March 2022.
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Meanwhile, Indian equity benchmarks rose sharply in today’s trade, led by gains in state-owned lenders, metals and energy stocks.