Reliance Industries share price surges 15% in seven sessions. What's driving the rally?
Premium- The stock had hit an all-time high of ₹2,368.8 apiece on September 16, 2020.
Shares of Reliance Industries Limited (RIL) continued its rally for the seventh consecutive day on Thursday with the stock surging around 15% in the seven trading sessions amid optimism about its future performance. The company's market valuation crossed the ₹14 lakh crore mark in early trade.
The stock has been on the gaining mode after global brokerage firm Jefferies raised its target price in the oil-to-telecom behemoth. The brokerage maintained its 'Buy' rating with setting the base target at ₹2,580 and suggested an upside scenario target of ₹3,150 for the stock.
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The stock had hit an all-time high of ₹2,368.8 apiece on September 16, 2020.
Separately, RIL's Chairman and Managing Director Mukesh Ambani has said that the company now has a strong balance-sheet with high liquidity after record fundraising and debt prepayments, which will support growth plans for its three hyper-growth engines - telecom arm Jio, retail and oil-to-chemicals business.
In the company's latest annual report released on Wednesday, he said the company sold minority stakes in Jio Platforms - the unit that houses its telecom and digital business - and retail arm for almost ₹2 lakh crore, 49% in fuel retailing venture for ₹7,629 crore and raised another ₹53,124 crore through rights issue. "We now have a strong balance-sheet with high liquidity that will support growth plans for our three hyper-growth engines Jio, Retail and O2C," he said.
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