Reliance Industries: Strong Recovery Post-Bonus Issue with Target Prices Soaring to ₹3,243 – ₹3,500

Reliance Industries (RIL), India’s largest oil and gas company, experienced a nearly 1% increase during the Muhurat trading session on November 1. This comes after a bearish week where the stock faced correction following its Q2 results and the announcement of a substantial bonus share allotment. Shareholders received approximately 677 crore equity shares in a 1:1 ratio, enhancing the company’s liquidity and investor sentiment.

Current Market Performance

As of November 1, RIL’s share price stood at ₹1,339.10, with a market capitalization of around ₹18.12 lakh crore. The stock reached an intraday high of ₹1,341.00 during the trading session, reflecting a slight recovery from previous declines.

Analyst Insights and Recommendations

• JM Financial has projected a target price of ₹3,500, highlighting the company’s robust revenue growth potential, particularly from its Jio and retail segments. They expect a 15% compounded annual growth rate (CAGR) in profit after tax (PAT) from FY24 to FY27.
• HDFC Securities has also issued a BUY recommendation, setting a target price of ₹3,243. They forecast a significant growth trajectory for RIL’s retail, telecom, and new energy segments, estimating a consolidated revenue/EBITDA/PAT CAGR of approximately 19%/14%/16% over FY24-26.

Investment Outlook

Analysts are optimistic about Reliance’s future performance due to its diversified business interests and strategic focus on growth areas, including green energy and digital services. The consensus suggests that now is a favorable time to buy Reliance Industries stock, with target prices indicating significant upside potential from the current levels.

Given the positive market sentiment following the bonus share allotment and strong analyst forecasts, investing in Reliance Industries appears to be a promising opportunity. It is advisable to consider entering the stock within the recommended price bands to capitalize on its projected growth, with targets of ₹3,243 to ₹3,500 for the coming years.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. Investing in stocks carries risks, and past performance is not indicative of future results. Please consult a financial advisor before making any investment decisions.