Buy This Multinational Conglomerate Company Stock For Potential Gains, Says Kotak Securities

Kotak Securities has a "Buy" rating on Reliance Industries Limited (RIL) stock with a target price of Rs 2,800. The brokerage believes that RIL is well-positioned to benefit from the ongoing recovery in the Indian economy and the growth of its digital and retail businesses.

Kotak Securities expects RIL's consolidated revenue to grow in FY24. The brokerage also expects the company's consolidated earnings per share (EPS) to grow by 14.6% in FY24E and by 14.5% in FY25E.

Kotak Securities believes that RIL's digital businesses, such as Jio Platforms and Reliance Retail, are key growth drivers for the company. Kotak Securities believes that RIL's valuation is attractive at current levels.

Here are some of the key reasons why Kotak Securities is bullish on RIL:

1. The Indian economy is expected to recover in the coming years, which will benefit RIL's businesses.
2. RIL's digital business, Jio, is expected to grow rapidly in the coming years. The 5G capex will likely peak soon
3. RIL's retail business is also expected to grow rapidly in the coming years. The pace of store growth continues.
4. RIL has a strong balance sheet and is well-positioned to fund its growth.
5. The MJ field has come online, even the KG-D6 field has further seen an increase in Q1FY24E, with 0.6 crore msmcd volume recently auctioned. The production to soon increase by 50%.

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Based on the SOTP-based valuation, the stock broking firm has done a fair on the stock of the company and has given a buy rating with a target price of Rs 2,800.

Scrip Price Movement

The stock price of Reliance ended at Rs 2481.90 marginally down by 0.72% on an intraday basis. In the last one year, the share price has plunged by 11.32% but over three years it has surged by 61.42%.

Disclaimer:

The stocks have been picked up from the brokerage research of Kotak Securities. Greynium Information Technologies, the author or the brokerage house will not be liable for any losses caused as a result of decisions based on the write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.