Reliance Outlook: Reliance’s shares have strengthened about 10 percent this year. Can it pick up more now or should I book profit?
Reliance Outlook: Shares of Reliance, a giant owned by Asia’s richest man Mukesh Ambani, have strengthened about 10 percent in 2022 this year. Now it can accelerate further or profit should be booked, market experts believe that the prices of Reliance can be 28 percent stronger. Market experts are positive about Reliance, the country’s largest company by market cap.
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InCred Equities: Add
Target Price: Rs 3369
- Globally, refining margins will remain strong as product demand has reached pre-Corona levels.
- Reliance has invested heavily in the energy sector, which will expand its business. In the short term, the company will benefit the most from its partnerships with Sterling & Wilson and REC Solar in the renewable energy space.
- Reliance Retail is the country’s largest, fastest growing and most profitable retail business. It is the only retailer in the country to be included in the ‘Global Powers Offer Retailing’.
- Reliance Jio is in the leadership position in the telecom sector and there is every possibility of its position continuing.
- In view of these factors, the analysts of Incred Equities have upgraded its rating from reduce to add. Its target price has been set at Rs 3369.
Prabhudas Lilladher: Buy
Target Price: Rs 3000
- Reliance’s profit increased in the last quarter of the last financial year, January-March 2022, on the basis of healthy refining and the giant telecom company Reliance Jio. The performance of the company’s retail arm Reliance Retail was also better.
- Reliance’s results are more likely to be better in the first quarter of April-June of the current financial year due to rising gas prices and continued strong performance of Jio and Retail.
- Considering the prospect of a better quarter, analysts of Prabhudas Lilladher have cut the income estimate for the financial year 2022-23 by 9 percent and the income estimate for the financial year 2023-24 by 7 percent due to the debt in the financial year 2021-22. is of.
- In view of all these things, analysts of Prabhudas Lilladher have reduced the target price for investment in Reliance from Rs 3045 per share to Rs 3,000.
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Motilal Oswal: Buy
Target Price: Rs 2935
- The growth of Reliance Retail has been aggressive for the last few years. Despite Corona, its stores have increased by 29 percent in the financial year 2020-2022. The business of its digital verticals Ajio and Geomart is growing rapidly. Now the market is slowly recovering from the tremors of Corona and is stabilizing, so Reliance Retail will get the benefit of it.
- Reliance Jio’s revenue grew by 8 per cent on a quarterly basis and EBITDA by 11 per cent in the March 2022 quarter on the basis of 11 per cent ARPU (average revenue per user). may increase.
- Reliance’s O2C (oil-to-chemical) business revenue grew 61 per cent year-on-year and EBITDA grew 56 per cent in FY22. Due to the recovery in the economy, the demand for polymers will see an uptick. The demand for oil is also increasing globally. Reliance’s O2C business is going to remain strong going forward.
- In view of all these things, Motilal Oswal has retained the buy rating of Reliance and has fixed a target price of Rs 2935 for investing in it.
Shares available at 8% discount
Reliance’s shares were at a price of Rs 2855 on April 28, which is a record price of 52 weeks. Talking about it now, its shares are at a price of Rs 2630.65 on BSE, which is about 8 percent discount from the record price of 52 weeks. By investing at the current price, about 28 percent profit can be earned.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)