Reliance Industries Shares Scale New Life Time High

Reliance Industries shares amid firm market sentiment have hit a fresh lifetime high in trade on April 21, 2022. Its new high hit during the session is Rs. 2777 per share. The previous lifetime high of the stock has been Rs. 2751.35 per share.

On the sharp gains back to back which lend support to the headline indices with Nifty seen to scale to 17,300, the market capitalisation of the oil to telecom conglomerate has gone higher to Rs. 18,74,331 crore.

The company other than its spree in the New Energy space for which analysts and brokerage firm expects it to see re-rating has lately signed a definitive agreement to invest in India's foremost Couturiers Abu Jani Sandeep Khosla for a 51% majority stake.

There are expectations doing the rounds that the company shall post better Q4Fy22 as the gross refining margins have scaled up in the petrochemicals space. Further, Reliance Jio is expected to come strong on the ARPU front.

Earlier in March Prabhudas Lilladher has come out with a high target price for the stock of Rs. 3045 on the premise that "We increase our FY23-24E assumptions by 4-8% as we factor in higher GRMs
(+USD1.5/bbl) and gas prices (+USD3-3.2/mmbtu), partially offset by highercost inflation and depreciation charges. Low product inventory and strong demand has pushed oil product spreads, which will benefit complex refiners like RIL. Gas to oil switch is also supporting higher diesel spreads. Additionally, domestic gas prices are set for sharp upmove on backdrop of multi-fold increase in international prices. Resultantly, we increase our estimate of gas realisation by 59% to USD10/mmbtu. Also incremental volumes of 12mmscmd from RIL's MJ field by Q3FY23E are timely because of tight market conditions. Meanwhile, we expect RIL's telecom and retail segment performance to remain strong on back of flow through of tariff hikes and opening of stores. RIL remains one of our preferred pick with play on strength across its business verticals. Reiterate BUY with revised PT of Rs3,045 (Rs2,955 earlier)".