Shares of Reliance Industries Ltd (RIL) slipped 4% amid a big market crash in early deals today. RIL shares fell 4.01% to Rs 1285.35 against the previous close of Rs 1339.10 on BSE. Market cap of the firm fell to Rs 17.48 lakh crore. Total 7.25 lakh shares of the firm changed hands amounting to the second largest turnover of Rs 94.46 crore on BSE. The stock hit a record high of Rs 1608.95 on July 8, 2024 and fell to a 52 week low of Rs 1149.08 on November 10, 2023.
RIL stock has lost 0.30% this year and risen 11.34% in the last one year.
In terms of technicals, the relative strength index (RSI) of RIL stock stands at 36.4, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1.2, indicating high volatility in a year. RIL shares stand lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
JM Financial has maintained its buy rating on the large cap stock.
"RIL’s stock price has under-performed broader markets with just 5% returns in CY24YTD versus 15% return for Nifty-50. We believe that this under-performance could reverse supported by faster-than-anticipated telecom tariff hikes by telcos', recovery in retail business and positive announcements on new energy business. Earnings growth momentum to remain strong across segments and we expect 15% PAT CAGR over FY24-27E, said JM Financial.
The brokerage listed out three risks to its projection for the RIL stock.
1) Continued high capex, resulting in rising net debt with limited earnings visibility from new projects
2) Weak subs addition limited ARPU hike
3) Weak downstream margins due to macro concerns.
HDFC Securities said, "Given the large technological advancements and ambitious growth targets, Reliance’s Retail, Telecom, and new energy segments are poised to become the upcoming growth drivers over the next two to three years. The company aims to double its EBITDA in the next five years, powered by 5G opportunities, increased investments in AI/data centers, further expansion in Retail and the start of PV/battery facilities in New Energy. The company could report a consolidated revenue/EBITDA/PAT CAGR of approx. 19%/14%/16% over FY24-26E."