Reliance Industries shares have gained after eight days of falling, as the market heavyweight has gained today. The shares of Reliance Industries, which hit a 52 week low of Rs 2218 on March 20th, were trading in green during the current trading session. The stock rose 2.9% to Rs 2265.45 against the previous close of Rs 2201.60 on the BSE. The stock of Reliance Industries has fallen 8.52% this year and lost 11.43% in the last year. The firm's shares were worth approximately 2.03 lakh and the firm's turnover was 46.10 crore on the BSE today.
In early trade today, the market cap of the conglomerate was 15.23 lakh crore.
The relative strength index RSI of RIL stock is 29.7, signaling that it is trading in the oversold zone. The stock has a beta of 1.1, indicating high volatility in a year. RIL shares are trading higher than the 5 day moving averages but are lower than 20 day, 50 day, 100 day and 200 day moving averages.
Here is a look at three factors that can push the recovery in the large cap stock.
While retail growth should slow down in line with consumer demand, the focus of Reliance Retail s focus on sq feet additions, omnichannel distribution, multiple brands acquisitions, large warehousing space additions and scaling up new commerce Jio Mart FMCG are positive for the stock, according to JP Morgan in a report. Recent brand launches such as Campa Cola, Independence in Gujarat suggest visible strides in RIL's FMCG foray in 2023, said international brokerage CLSA.
JPMorgan sees continued strength in refining business, a likely rebound in petrochem spreads from decadal low levels from China re-opening, and volume growth in E&P driving earnings growth for the Mukesh Ambani-led conglomerate.
The next stage of growth should be driven by Jio 5 G while non-telecom has been slow so far. Jio should have a relatively soft FY 24 as telecom tariff hikes are not expected. Jio s 5 G launch is currently available across 134 cities and a pan-India rollout by Dec 23 and the company plans to connect 100 million homes via Jio Fiber and Jio Air Fiber should allow for material ARPU increase blended basis over the next few years, according to JPMorgan.
JPMorgan is positive on Reliance with a price target of Rs 2,960 for March 2024 An increasingly capital-scarce environment, RIL's core strength of investing large amounts of capital in growth projects is a key positive, the foreign brokerage said.
CLSA said RIL is a bargain buy. The stock is just 5% above a conservative value based on nearly 3 years old deal value for Jio retail, a 15% discount to the announced Aramco deal value for O 2 C nil value for new energy. It sees a 35% upside to the stock.