Reliance Industries stock reclaims ₹3,000 level after 15 sessions, hits new record high

Domestic brokerage Motilal Oswal has maintained its 'buy' rating on Reliance Industries, setting a target price of ₹3,245 per share.

Shares of Reliance Industries, India's largest company by market capitalisation, reclaimed the ₹3,000 mark in today's trading session after a 15-session gap, setting a new record high of ₹3,037.95 per share by gaining 4.50%.

By the session's close, the stock settled at ₹3,028, reflecting a significant 4.12% increase, marking its third-largest intraday gain in CY24 thus far. The rally propelled the company's market capitalisation to reclaim the ₹20 lakh crore mark, reaching ₹20.48 lakh crore, with an addition of ₹81,203 crore today.

The stock lagged in the recent market rally, showing an 8.3% increase in the last 15 sessions as compared to the Nifty 50's 9% surge, and has risen by 5.85% in June so far, slightly underperforming the Nifty 50, which gained 5.94% over the same period. However, the stock has recorded a 17.84% rise in CY24 so far, surpassing the index's 9.84% advance.

As Reliance Industries participated in the market rally, it propelled the Nifty 50 to touch another all-time high of 23,889 points, nearing the ₹24,000 mark. Out of the index's 147-point rally today, Reliance Industries contributed 86.62 points, accounting for 59% of the total gain.

Following its Q4FY24 results, domestic brokerage Motilal Oswal has maintained its 'buy' rating on the stock with a target price of ₹3,245 per share. The brokerage highlighted robust performance in the consumer business, projecting double-digit EBITDA growth.

Specifically, it expects RJio and Reliance Retail to achieve 14% and 25% EBITDA CAGR, respectively, from FY24 to FY26. This growth trajectory is underpinned by expansion initiatives, diversification into new retail categories, strategic subscriber acquisition efforts, and anticipated tariff adjustments in the telecom segment.

In the oil-to-chemicals (O2C) sector, Motilal Oswal anticipates a recovery in the refining and petrochemical segments. This rebound, according to the brokerage, is attributed to diminishing net capacity additions year-on-year and the forthcoming full-scale operation of enhanced volumes at the MJ Field, expected to contribute significantly in FY25.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.