Kotak Institutional Equities has a buy rating and has raised target to Rs 2,150 from Rs 1,750 while Nomura has a 'buy' recommendation and has raised the target price to Rs 2,200 from Rs 1,900.
Reliance Industries (RIL) share price gained more than a percent hitting new record high of Rs 2,010 per share on the BSE.
The stock price has surged over 62 percent in the last 3 months, and on July 22, it was trading at Rs 2,003.60, up Rs 31.75, or 1.61 percent at 12:45 hours IST. The market capitalisation stood at Rs 12.70 lakh crore.
It was also one of the most active stocks on NSE in terms of value with 1.79 crore shares being traded.
Reliance Industries partly paid up rights shares traded at Rs 1,106.85 on the BSE at 12:45 hours IST, which was more than double its intrinsic value (Rs 500), and up 1.97 percent compared to previous closing, with a market capitalisation of Rs 46,719.78 crore.
The intrinsic value is the difference between current partly paid up rights share price and one-fourth stock price of Reliance Industries. Investors have so far paid only 25 percent (Rs 314.25) of rights issue price of Rs 1,257, hence Reliance price of around Rs 2,000 should be divided by 4.
Brokerages and analysts are bullish on Reliance Industries following the announcements made in its AGM, debt-free status, a healthy balance sheet and a strong growth outlook.
Also read: RIL to announce Q1 results on July 30 instead of July 24
Japanese brokerage firm Nomura has a 'buy' recommendation on the oil-to-retail conglomerate, raising the target price to Rs 2,200 from Rs 1,900.
"RIL is our preferred pick in India oil & gas. RIL is now outperforming the benchmark Nifty for the sixth year. From the lows in March, RIL is up 110 percent against Nifty's 41 percent rise. From end-2014, when this cycle began, RIL is up 4.1 times against the Nifty’s rise of 30 percent," Nomura said.
It has cut FY21/22F earnings estimates by 16 percent/9 percent due to prevailing weak refining/chemical margins, and also a lower remaining stake in Jio (67 percent against 90 percent earlier).
"With nearly 49 percent year-on-year (YoY) growth in FY20, consumer businesses’ contribution to RIL’s aggregate EBITDA grew from 3 percent in FY17 to 35 percent in FY20. Further, we expect the share of consumer businesses in RIL’s consolidated EBITDA to increase to 52 percent by FY22F," said Nomura.
Kotak Institutional Equities has a buy rating and has raised target to Rs 2,150 from Rs 1,750. It is of the view that the company’s foray in digital commerce business is going to be next big driver. Company being at forefront of consumer-facing digital ecosystem opportunity in India. Its retail business can double revenue to over USD 26 billion from core segments in 4 years, according to a report by CNBC-TV18.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.