Reliance Industries Shares Upgraded To Buy For A Target Of Rs. 2955/ Share

Ril shares in robust session has surged by as much as 3 percent in session today. Meanwhile, Indian indices are also trading firm after the Economic Survey puts that the country is well placed to face challenges of Fy23. The stock on the phenomenal gains has scaled to day's high price of Rs. 2406.4, while last the stock traded with gains of 2.74% at Rs. 2399.75 per share.

The share price of the company has reacted to the CLSA upgrade on the stock as well as raise on the target price. It noted that after falling sharply, the conglomerate is now within 15% of its conservative value, thereby upgrading its rating from Outperform to Buy, and raising its target price from Rs 2,850 to Rs 2,955/share. This from the stock's last traded price imply probable gains of over 23%.

Further as per the brokerage the stock provides the good entry point at current levels to hold on for a long term from across Indian themes.
In the December ended quarter, the company posted net jump in profit YoY by 37.9% to Rs. 20,539 crore.
"Since its mid-2020 stake sale, Retail has seen further improvement as a dominant O2O player. These include a 35% rise in selling area to 40m sq feet, a 20x expansion in merchant partnerships under Jio Mart Grocery, doubling in number and frequency of ordering for Jio Mart, a 3x rise in online product assortments and the start of merchant partnerships in Jio Mart Digital. Driven by a huge rerating in multiples, the EV of listed retail players has nearly doubled in the past 18 months", the foreign firm said.
The foreign brokerage has advised the stock to be at a good entry point for investors to hold on a long-term basis, across Big India themes. The various drivers of the gains on the net profit have been improving growth in the company's refining, retail, telecom business as well as from gains accruing from selling its US shale gas business.

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