Reliance Industries at a new high; Goldman Sachs, ICICI Securities see further gains

The Reliance Industries Limited (RIL) stock extended the previous session’s gains to rise more than a percent on January 11 morning to hit a new high of Rs 2,691.20 on the National Stock Exchange.

The heavyweight has been in an uptrend after Goldman Sachs reiterated its “buy” call on the back of “exposure to structurally growing consumer and tech businesses, compounding with a robust oil to chemical business”.

The brokerage raised the 12-month target for Mukesh Ambani-led RIL to Rs 2,885 from Rs 2,660. It revised downwards the EBITDA forecasts for fiscal years FY24, FY25, and FY26 by -2 percent, -3 percent, and -4 percent, respectively.

A measure of profitability, EBITDA is short for earnings before interest, taxes, depreciation, and amortisation.

At 10.39 am, RIL was trading at Rs 2,670.10 on the National Stock Exchange, up 0.75 percent from the previous close.

The stock has risen around 8.5 percent in the past month, outperforming the benchmark Nifty that gained 3 percent during the period.

Follow our market blog to catch all the live action

Domestic brokerage ICICI Securities expects the stock to rise to Rs 3,050 in the medium term. The stock digested multiple headwinds, making a strong base in the vicinity of rising 100-week exponential moving average (Rs 2,235), which it has held on to since 2017 except the Covid fall.

“Bullish engulfing candlestick at 10-day EMA suggests further upward momentum”, it said.

Morgan Stanley has assigned a target of Rs 2,821 to RIL. It sees multiple triggers to reverse the past nearly two years of earnings downgrade cycle. In its India Equity Strategy Outlook 2024, the foreign brokerage added Reliance Industries to its focus list.

Also Read | Goldman Sachs retains Buy on Reliance Industries, downgrades other oil stocks

Jefferies also has a ‘buy’ call on Reliance Industries stock with a target price of Rs 3,125. In an earlier report, the brokerage highlighted the company’s favourable valuation while maintaining the rating.

It sees a robust 13 percent EBITDA growth for the Mukesh Ambani-led company in FY25. Reliance Jio, the telecom subsidiary of the conglomerate, could contribute two-thirds of the company’s share, driven by an expected tariff hike.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.