Rs 1.2 Lakh Crore Profit! Reliance Industries Shares Recorded Their Best Day in Over 3 Years
Image Source: Timesnow
As investors lapped up shares of Reliance Industries (RIL), the stock rallied around 7% to a fresh lifetime high of Rs. 2,905 on BSE. The market capitalization of India’s most valued stock jumped by Rs 1.2 lakh crores during the day to Rs 19.6 lakh crores.
Today’s rally was the single largest gain for RIL in the last three years; the previous best single-day performance was seen during the Covid – 19 rallies. In the calendar year 2020, there were four instances when RIL stock had gained at least 10%, with the best of 14.65% coming on 25th March 2020.
“It is a clear breakout. This stock has not performed for the last year, and it had disappointed many people who were invested in it, but I feel now if it sustains above Rs 2,800, a move towards Rs. 3,000 cannot be ruled out.” CA Rudra Murthy BV of Vachana Investments said.
In the last three months, the stock has risen by over 27%, with analysts pinning hopes on the possibility of eventual listing Reliance Jio and Reliance Retail after Jio Financial was spun off into a listed entity last year.
At the company’s AGM in 2022, Ambani told shareholders that RIL’s market value would double by the end of its golden decade in 2027. To achieve that dream, the listing of both Jio and Reliance Retail is important.
Besides, speculations around the demerger, investors are also expecting telecom companies to hike tariffs by 20% in Q2FY25 after the Lok Sabha Elections.
“In the absence of mobile tariff hikes, our FY26 forecast for Reliance Jio’s EBITDA will be lower by 22% to $7.6 billion. This could meaningfully impact Jio’s valuation around listing; hence we believe an upward trajectory of tariffs supported by Jio as well,” Jefferies said.
Analysts expect 2024 to be an eventful year for RIL as the past two years of investments move into the monetization phase. Jefferies, which has forecasted 12% EBITDA growth in FY25 with Jio contributing the lion’s share on the back of a tariff hike, has a target price of Rs. 3,140.
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