Shares of Reliance Industries Ltd (RIL) have delivered single-digit returns since two years. The large cap stock has also lost 19% from its record high of Rs 1,608.95 reached in July this year. With sluggish pace of growth in two years, the RIL stock looks set to end 2024 on a flat note. The stock has lost 0.17% in 2024. Interestingly, its one-year returns of 7.71% exceed 3.32% returns delivered in two years. The stock gave double digit returns of 14.69% in three years.
In the current session, the market heavyweight rose nearly 2% to Rs 1,299.30 on BSE. The company's market cap slipped to Rs 16.79 lakh crore on BSE today. Total 5.22 lakh shares of the firm changed hands amounting to a turnover of Rs 64.41 crore on BSE.
The large cap stock is neither oversold nor overbought on charts with its RSI at 41.7.
In terms of moving averages, RIL shares are trading higher than the 5 day, 10 day, 20 day but lower than the 30 day, 50 day, 100 day 150 day, and 200 day moving averages.
The stock has a beta of 1.2, indicating high volatility in a year.
Global brokerage Morgan Stanley has retained its ‘Overweight’ stance on RIL with a price target of Rs 1,662 per share.
The brokerage said Reliance's refining margins were beginning to recover after two challenging quarters. It also noted an increase in permanent refinery capacity shutdowns.
Another brokerage JPMorgan is overweight on RIL with a revised target of Rs 1,468. It has cited improved refining margins and potential from its solar panel venture, though retail growth concerns persist.
The report said one of the key factors behind RIL's recent underperformance—weak refining margins—has reversed, offering a positive outlook. However, the other factor, sluggish retail top-line growth, remains challenging to predict, though market expectations have moderated.
Global brokerage CLSA has an 'Outperform' rating on RIL. It has assigned a target of Rs 1,650 to the stock.
According to CLSA, the stock market is ignoring the new energy business of Reliance Industries Ltd (RIL) worth $40 billion and said the RIL stock is priced attractively to play triggers in 2025 such as the start of new energy capacities, the return of promising growth in retail, a ramp-up in AirFiber subscribers and a potential Reliance Jio Infocomm initial public offer (IPO).
The foreign brokerage is bullish on Reliance's fully integrated 20GW solar Gigafactory, set for launch in 3-4 months. The brokerage believes the RIL stock can rise 70 per cent in the blue-sky scenario. In its base case, it anticipates 30 per cent upside for the oil-to-telecom major.