Reliance stock may jump up to 15%
[ad_1]
New Delhi: The result of the country’s most valuable company Reliance Industries in the June quarter was not as per the expectations of the market. The company’s shares have fallen by about five per cent in the last two days and the market cap has also come down by Rs 1 lakh. But after the result, analysts of most brokerages have increased the target price of Reliance’s stock. 25 out of 31 brokerages have increased the target price of the company’s stock in the range of 0.5 to 15 per cent. Two brokerages have maintained their target prices while two have cut them. On Monday, Reliance shares closed at Rs 2487.55, down 1.92 per cent on the BSE.
Analysts have an average target price of Rs 2790 on Reliance stock, an upside of 12% from its Monday’s closing price. Most analysts expect a rise in Reliance’s stock. The company’s oil to chemical business was under pressure in the June quarter but retail and telecom performed well. BOFA Securities said in a note sent to its clients that Reliance’s AGM could act as a trigger for the stock. In this, the company can give updates about its business.Why can there be a boom
Analysts have an average target price of Rs 2790 on Reliance stock, an upside of 12% from its Monday’s closing price. Most analysts expect a rise in Reliance’s stock. The company’s oil to chemical business was under pressure in the June quarter but retail and telecom performed well. BOFA Securities said in a note sent to its clients that Reliance’s AGM could act as a trigger for the stock. In this, the company can give updates about its business.
Why can there be a boom
Reliance has not yet announced the date of its AGM but it could happen in mid-August. Reliance’s stock had reached an all-time high on 19 July. It had gained 31 per cent from the low level of March. The company demerged its financial services arm on July 20. In a note sent to its clients, JP Morgan said that apart from earnings, unlocking of value through stake sales, IPOs and listings could accelerate Reliance’s stock over the next 2-3 years. In the last AGM, the company’s chairman Mukesh Ambani had talked about doubling the market cap of Reliance in five years.
[ad_2]
Source link