Shares of Reliance Industries amid strong market momentum when Nifty has strengthened again to 14600 levels is up in trade by over 2.35 percent. And at the day's high price, the scrip of RIL has jumped to Rs. 1990 per share on the NSE.
On April 26, 2021, the oil to telecom conglomerate and BP announced that it has begun the start of production from the Satellite Cluster gas field, in block KG-D6, ahead of schedule. The second of the three deep-water gas developments, planned jointly, was expected to start production in mid-2021.
Now amid positive news surrounding the company, global brokerage firm Jefferies has recommended a buy on RIL with a target price of Rs. 2600. It says that the overseas investors are more constructive on Reliance Industries at this point in time compared to the domestic peers.
A number of investors believe that Reliance is emerging as a local champion with the right to win in retail and telecom.
Some investors believe that event-driven triggers are behind, but Jefferies believes that there are few more triggers left for the stock to re-rate.
- One is the launch of affordable smartphone
- The Future Group deal
- O2C stake sale over the next 12 months.
There is a belief that oil to chemical monetization as well as possible demerger listing would be another triggers for the stock of RIL stock Also, the tariff hike could enable the rerating of the entire Jio platform. But the near-term trigger would be monetisation of the oil to chemicals.