Brokerage Firm Reiterate Buy On This Bluechip Stock, Trading Near 52 Week Low, Sees 20% Gains

BoB Capital Markets reiterates "Buy" on Reliance Industries Ltd. (RIL), a diversified sector company, with a target price of Rs 2,810/share. The brokerage firm claims a potential upside of up to 20% from its current level if stock is purchased at the current market price. RIL is engaged in various sectors such as energy, materials, retail, entertainment and digital services. It is a bluechip large cap stock with a market capitalisation of Rs 15,85,678 crore.

Stock Performance

The current market price of the stock is Rs 2,337/share, down 0.64% from the previous close of Rs 2,352/share. The stock today opened at Rs 2,354.10/share. Its 52 week low is Rs 2,180/share recorded on 20 March 2023 and 52 week high is Rs 2,856/15/share recorded on 29 April 2022. The stock has given 6.42% positive return in 1 month, however, it gave 0.55% negative return in 1 week. In the past 1 year it has given 13.83% negative return. In the past 3 years, it has given 88.34% positive return. In the past 5 years, it has given 152.46% positive return.

Reiterate BUY, TP Rs 2,810

BoB Capital Markets said, "We revise our TP to Rs 2,810 (from Rs 2,840) as we now account for JFS at Rs 144/sh, valuing it in line with RIL's treasury stock, and also value RIL without adjusting for treasury stock on its books. Our TP for RIL is based on an SOTP valuation for the refining (7x FY25E EV/EBITDA), petrochem (8x), telecom (Jio: 9x) and retail (30x) businesses. Apart from Rs 144/sh now added for JFS, our valuation includes Rs 149/sh for the upstream business, Rs 104 for digital services and Rs 121 for the new energy division."

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