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    Reliance Industries shares hit Rs 2,000-mark, up 130% from March lows

    Reliance Industries shares hit Rs 2,000-mark, up 130% from March lows

    Reliance Industries shares hit Rs 2,000-mark, up 130% from March lows
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    By Pranati Deva   IST (Published)

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    The share price of Reliance Industries hit Rs 2000-mark on Wednesday, rising over 130 percent from its March low of Rs 867.82.

    The share price of Mukesh Ambani-led Reliance Industries hit Rs 2000-mark on Wednesday, rising over 130 percent from its March low of Rs 867.82. The stock also became the first Indian company to cross the market capitalisation of over Rs 12 lakh crore on the back to multiple investments in its digital arm Jio Platforms. Its current market cap (m-cap) stands at Rs 12.62 lakh crore.
    In a recent report, Nomura noted that for the sixth consecutive year, the oil-to-telecom-to-retail conglomerate has outperformed the benchmark Nifty50 index. On a year-to-date basis, RIL has jumped 31 percent as compared to an 8 percent fall in the broader NSE Nifty50 index.
    It added that while the valuations of the RIL stock are getting richer, it feels that the outperformance may sustain and hence, raised the target price on the stock to Rs 2,200 from an earlier target of Rs 1,900 per share.
    Other major brokerages have also raised the target price for the RIL stock post its annual general meeting (AGM) where RIL chairman Mukesh Ambani made major announcements, particularly on indigenous 5G technology development, JioTV, Jio network et al.
    In the first-ever virtual AGM, Ambani announced that Google is buying a 7.7 percent stake for over Rs 33,000 crore in Jio Platforms. He also talked about the expansion of Reliance Retail and spinning off the oil-to-chemicals business into a separate subsidiary.
    Domestic brokerage Kotak Institutional Equities has also retained a 'buy' on the stock and raised target price to Rs 2,150 from Rs 1,750 earlier. It said that the RIL's foray in digital space will be the next big driver in the company's growth trajectory while adding that retail business can double revenue to over $26 billion in 4 years.
    The only downside risk for the firm is negative cash flow for many years on diversification in telecom, noted Bank of America (BofA) Securities in another note.
    Disclosure
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