Synopsis:
The stock prices of Reliance Industries Limited (RIL) are approaching record highs, raising speculation about whether they will surpass the Rs 3,000 mark. ICCBizNews explores the current trajectory of RIL stocks and analyzes factors influencing their potential surge. The article aims to provide investors and stakeholders with insights into the market sentiment surrounding RIL and the possibility of achieving new milestones in stock valuation.
On January 5, Reliance Industries shares concluded at Rs 2,606, marking a 0.36% increase from the previous closing value of Rs 2,597.40 on the BSE.
In early 2024, Reliance Industries Ltd (RIL), led by Mukesh Ambani, is nearing its all-time high. The stock reached a peak of Rs 2,635.17 on July 19, 2023, but experienced a notable dip to its 52-week low of Rs 2,012.14 on March 20, 2023. On January 5, the large-cap stock concluded at Rs 2,606, reflecting a 0.36% increase from the previous closing value of Rs 2,597.40 on the BSE.
At its current position, Reliance Industries stock has surged by 29.51% from its 52-week low and has experienced a year-on-year increase of 12.36%. Displaying low volatility over the past year with a beta of 0.2, the stock is balanced on technical charts, evident from its relative strength index (RSI) standing at 68.8. Trading above the 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, Reliance Industries shares indicate a bullish market trend.
During the recent session, the stock touched an intraday low of Rs 2,597.95 on Friday, contributing to a market capitalization of Rs 17.63 lakh crore on the BSE. The total turnover on BSE amounted to Rs 121.30 crore, with 4.66 lakh shares of the company changing hands.
ICICIdirect anticipates the stock to reach Rs 3,050 in the medium term. According to the brokerage, the stock has successfully navigated various challenges and established a solid foundation, notably near the ascending 100-week EMA (Rs 2,235), which has been maintained since 2017, except for the Covid-induced decline. ICICIdirect believes that the stock is on a trajectory toward Rs 3,050 in the medium term, calculated by measuring the implications of the range between March 22 and July 23, added to the current value of Rs 2,600.
Having remained relatively unnoticed for more than two years while digesting the robust rally of 2020-21, the stock is now poised to conclude its consolidation phase and is expected to lead the Nifty in 2024. The brokerage notes that, structurally, the corrective phase over the past two years has retraced only 38% of the preceding 18-month rally over the past 26 months, indicating a resilient price structure.
Morgan Stanley targets Reliance Industries stock at Rs 2,821, citing triggers to reverse a two-year earnings downgrade trend. Factors include RIL's focus on reducing debt, potential retail sector moves, and positive impacts on chemicals and fuel markets. Jefferies maintains a BUY stance with a target of Rs 3,125, emphasizing favorable valuation.
The report anticipates a robust 13% EBITDA growth for Reliance Industries in FY25, with Jio, its telecom subsidiary, expected to contribute two-thirds of the company's share, driven by an anticipated tariff hike. Jefferies predicts a decline in capital expenditure for Jio and the retail segment in FY25, seen as crucial in boosting free cash flow and addressing concerns about potential increases in net debt.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, maintains a hold stance on the large-cap stock with a target price range of Rs 2,730-Rs 2,850. He notes that Reliance Industries has significantly gained traction in the past two months post a descending channel breakout. The stock is currently approaching the previous peak level of Rs 2,630, where some resistance may be encountered. Koothupalakkal suggests a near-term support at Rs 2,470, and a decisive breach below this level could weaken the overall bias. Conversely, a breakthrough above the previous peak zone of Rs 2,630 could trigger fresh targets at Rs 2,730 and Rs 2,850 in the medium-term timeframe.
On October 27, the conglomerate unveiled its financial results for the September quarter. Reliance Industries disclosed a 29.7% increase in consolidated net profit to Rs 19,878 crore in Q2 compared to the previous year, despite a decline in revenue from its oil-to-chemicals segment. Revenue from operations for the quarter ending on September 30 rose to Rs 2.55 lakh crore, up from Rs 2.52 lakh crore the previous year.
Disclaimer: Business Today presents stock market news for informational purposes only and does not constitute investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.
