Shares of India’s largest company by market capitalisation Reliance Industries (RIL) on Wednesday rallied up to 3% to hit a fresh 52-week high of Rs 2,658.95 on BSE.
The sharp rally was accompanied by a spurt in volume of more than 2 times. In the meantime, shares of Network18 also ended 20% up to a fresh high while TV18 Broadcast was up 15.5% to Rs 64.47.
Earlier in the day, an RIL Chairperson said the Mukesh Ambani Dhirubhai Ambani Green Energy Giga Complex in Jamnagar is ready to be commissioned in the second half of 2024 itself. Spread over 5,000 acres, the project will generate a large number of green jobs, enable the production of green products and materials, and will make Gujarat a leading exporter of green products.
While speaking at the 10th edition of the Vibrant Gujarat Summit, Ambani said Reliance is setting up India’s first and world-class Carbon Fibre facility at Hazira to make Gujarat a pioneer in New Materials and the Circular Economy. RIL shares remain on the buy list of top brokerages.
“Based on recent deals we find it an attractive risk-reward proposition given potential triggers in the next 12-18 months such as an uptick in wireless broadband, mobile tariff hike, operating leverage after recent expansion in retail, and potential IPO of Jio and/or retail units,” global brokerage firm CLSA had said recently.
The stock underperformed the Nifty by 9% in the calendar year 2023.
“We forecast 13% Ebitda growth in FY25E with Jio contributing ~2/3rd share on the back of a tariff hike. We expect capex to decline in Jio and Retail in FY25E helping improve FCF abating concerns on rise in net debt. We have lowered FY24/25E Ebitda 2%/1% on lower O2C profits,” Jefferies said, while giving a target price of Rs 3,125.
