India's largest oil and gas stock, Reliance Industries (RIL) has announced the allotment of its 1:1 bonus issues. On the auspicious day of Dhanteras, Reliance allotted a whopping nearly 676.62 crore equity shares for free as part of its 1:1 bonus ratio. Adjusted to the bonus ratio, Reliance's stock price has corrected and is currently below Rs 1,350. The consensus recommendation on Reliance stock is BUY. This Mukesh Ambani backed company is also among top Diwali picks for SAMVAT 2081.
Reliance Industries Share Price:
On the day of Dhanteras, Reliance stock ended at Rs 1338.95 apiece, up 0.4% on BSE with a market cap of Rs 9,05,958.43 crore. The stock's new 52-week high and low of Rs 1,608.95 apiece and Rs 1,136 apiece respectively.
The price-to-equity ratio is at 24.80x, while the return on equity is at 6.97%.
As per the regulatory filing, on October 29, Reliance announced that its wholly-owned subsidiary, Reliance New Energy presently holds a 92.01% equity stake in Faradion Limited ("Faradion"). RNEL has informed the Company that it has on October 28, 2024, acquired the balance equity stake from the existing shareholders of Faradion.
Reliance Industries Bonus Shares Allotment:
On Tuesday, Reliance announced that it allotted 676,61,86,449 equity shares of Rs. 10/- (Rupees Ten only) each as fully paid-up bonus equity shares, in the proportion of 1:1, i.e., 1 (One) new fully paid-up equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each, to the eligible members of the Company whose names appeared in the Register of Members / Register of the Beneficial Owners, as on October 28, 2024, the 'Record Date' fixed for this purpose.
Post the bonus issue allotment, the paid-up equity share capital of the Company stands increased to Rs. 13532,37,28,980 divided into 1353,23,72,898 equity shares of Rs. 10/- each.
The bonus issue ratio was 1:1. This will be the first bonus issue by Reliance in seven years. The last bonus issue was also of 1:1 ratio in September 2017. While Reliance's first bonus issue was also 1:1 in November 2009.
BUY Reliance Stock:
As per Trendlyne data, the consensus recommendation from 37 analysts for Reliance Industries Ltd. is BUY. EPS is expected to grow by 3.7% in FY25. The new average 1-year target price on Reliance is at Rs 1652.54 apiece, which signals over 23% potential upside.
Brokerage Way2Wealth has selected Reliance stock among its top Diwali picks for SAMVAT 2081. The brokerage's note said, "We are confident that Reliance Industries Limited (RIL) presents a compelling investment opportunity, driven by strong growth prospects across its diverse business segments and the potential for significant value creation in its retail, digital services, and financial services portfolios."
The brokerage took note that Reliance's retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening retail operations will help rapidly scale-up this business in the coming quarters and years and sustain industry-leading growth momentum.
Also, it added, with a comprehensive range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the New Energy business is poised to become a significant contributor to global clean energy transition.
Way2Wealth has set a target price of Rs 1,500 on Reliance.
Reliance Industries Limited (RIL) is a Fortune Global 500 company and the largest private sector company in India. RIL is a diversified conglomerate with business interests across oil refining, petrochemicals, exploration and production, retail, and digital services.
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