Shares of Mukesh Ambani-led Reliance Industries Ltd (RIL) have revisited their lows hit in March this year. RIL stock closed at Rs 2,288.55, down 1% in the last session against the previous close of Rs 2,311.35 on BSE. The large cap stock ended below the Rs 2,300 level for a majority of sessions (13 sessions) in March this year. Interestingly, the stock fell to its 52-week low of Rs 2012.14 on March 20, 2023.
In October too, the stock closed below the Rs 2,300 level for five sessions. Except March and October, the RIL stock traded above the Rs 2,300 level in 2023.
At the current level, the Reliance Industries stock has lost 13% from its 52-week high of Rs 2635.17 hit on July 19, 2023.
RIL stock is down 3.72% in 2023 and fallen just 2.75% in a year. It has logged a maximum decline of 10.18% in the last three months. It has remained highly volatile in one year with a beta of 1.2.
The stock is neither oversold nor overbought on technical charts with its relative strength index (RSI) at 42.8. Reliance Industries shares are trading lower than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signaling the stock is trading in a bearish zone.
In the last session, Reliance Industries shares, which are also a key component of both Sensex and Nifty ended below the Rs 2300 mark on BSE. Reliance Industries stock touched an intraday low of Rs 2282.80 on Tuesday. Market cap of Reliance Industries fell to Rs 15.48 lakh crore on BSE. Total 1.47 lakh shares of the firm changed hands amounting to a turnover of Rs 33.79 crore on BSE.
On October 27, the conglomerate announced its September quarter results.
Reliance Industries reported a 29.7% rise in consolidated net profit to Rs 19,878 crore in Q2 from a year ago, despite a dip in revenue from its oil-to-chemicals business.
Revenue from operations rose to Rs 2.55 lakh crore for the quarter ended September 30 compared to Rs 2.52 lakh crore last year.
Prabhudas Lilladher has maintained its buy rating with a target price of Rs 2618, based on SoTP valuing the standalone business at 7.5 times FY26 EV/EBITDA), Jio at 15 times FY26 EV/EBITDA and retail at 37times FY26 EV/EBITDA
Laxmikant Shukla, Technical Research Analyst at YES Securities said Reliance Industries is in a corrective phase. "From a technical point of view, the stock lacks traction and has given congestion breakdown below the Rs 2,400 level. Negative crossovers in RSI and stochastic on the daily chart are also suggesting bearish sentiments. As far as levels are concerned, the support is placed at Rs 2,320. This is where the 200-DMA lies for the stock. On the higher end, resistance is placed at Rs 2,500, followed by Rs 2,585 level."
Nuvama Institutional Equities has reduced its target price by 4% to Rs 2,950 and FY24/25E EBITDA by 3%.
"Net debt dipped Rs 8,000 crore to Rs 1.2 lakh crore from March led by an Rs 15300 crore capital-raise from stake sale in retail ventures. We reiterate long-term ‘golden refining era’ thesis. New energy shall unleash the next leg of growth opportunity," said the brokerage.
Systematix Institutional Equities has upgraded RIL to ‘Buy’ post Q2 results. “RIL reported healthy results during Q2FY24 but largely in line with our estimates. We keep our forecast unchanged and expect earnings to remain tepid at 6.4 per cent CAGR during FY23-FY25E on the back of weak O2C and slower growth in consumer businesses. However, the stock has corrected around 11 per cent since we downgraded the stock post-Q1FY24 result. Hence, we upgrade the stock to a ‘Buy’ which gives an upside of 13 per cent. Potential tariff hike post-election and revival in petchem margins in H2FY24 are a few upside triggers.”
Kotak Institutional Equities has assigned a target price for the stock at Rs 2,725.
“With rising subscriber base and consumer engagement on 5G, this brokerage believes there is a case to raise tariffs soon. "Post 15 per cent decline since recent peak, risk-reward is now favourable. We upgrade RIL to BUY; revised fair value of Rs 2,725," the brokerage said.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: GIFT Nifty down 10 points: Asian markets, crude oil prices, dollar movement, Q2 earnings & more
Also read: HDFC Bank, RIL, HUL, Kotak Bank, UPL: 5 Nifty stocks near 52-week lows; share price targets & more