Reliance Industries shares rally 6% post Jefferies forecast; check target price here

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Shares of Reliance Industries (RIL) advanced nearly 6% after Jefferies retained a ‘Buy’ rating on the energy-to-telecom behemoth with a target price of Rs 2,580, indicating an upside of 30% from the previous closing price of Rs 1,978.20.

The scrip traded over 5.50% higher at Rs 2096.35 at around 3.11 pm (IST). On the other hand, the benchmark BSE Sensex was up 0.59% at 51,419 at around the same time.

Commenting on Reliance Industries, Jefferies said, “At the current stock price, valuing the energy business at long-term average multiples, we are left with Rs 1,150 per share as the imputed value of RIL’s stake in Jio and Retail. This is in line with the valuation offered by PE funds that bought stakes in Jio and Retail in 1QFY21. In our view, sustained strong petrochemical performance improves the likelihood of O2C stake sale in FY22.”

The scrip may hit Rs 3,150 apiece The global brokerage firm also highlighted that the stock can hit Rs 3,150 in bull case scenario and Rs 1850 in the bear case.

Q4 numbers Earlier, RIL on April 30 reported 108% YoY growth in consolidated net profit at Rs 13,227 crore for the quarter ended March 31, supported by 47.50% growth in the bottom line of the company’s telecom arm Reliance Jio.

RIL had posted a profit of Rs 6,348 crore in the same period last year. Revenue of the company increased 11% YoY to Rs 1,54,896 crore.

Recovery in downstream cyclical margin and continued strong performance from the consumer-centric business have led to most analysts being upbeat about the stock.

Sharekhan bullish on RIL Brokerage Sharekhan retained its bullish view on RIL with a target price of Rs 2,400. “RIL’s PAT to grow at 30% CAGR over FY2021E-FY2023 led by a recovery in downstream cyclical margin and continued strong performance from consumer-centric business. RIL’s efforts to carve out its O2C segment into a separate subsidiary would facilitate strategic partnership with global players and help unlock value.”