Reliance is top Nifty 50 contributor as analysts bet on these four factors

Reliance Industries shares were the top Nifty 50 contributor on March 21, after more than a week of falling and hitting a 19-month low yesterday.

Reliance Industries shares were the top Nifty 50 contributor on March 21, after more than a week of falling and hitting a 19-month low yesterday. This was RIL’s biggest losing streak in nine years.  However,  brokerages remain positive on the oil-to-retail-to-telecom conglomerate expecting a more than 30 percent upside in the stock.

Tuesday’s gain comes after the government marginally increased export duty on diesel to Rs one per litre from Rs 0.50 while keeping both petrol and Aviation Turbine Fuel (ATF) exempt from the export levy.

The new rate is set to be effective from Tuesday, March 21. Brokerage firm CLSA has called it a bargain buy, noting that Reliance’s stock has fallen by about 20 percent in less than four months, taking it to just five percent above a conservative valuation based on a nearly three-year old value deal for Jio and retail, a 15 percent discount to the announced Aramco deal value for O2C and nil value for new energy. It has a buy recommendation with a target price of Rs 2,970, implying a 35 percent upside from Monday’s closing price.

The brokerage believes the ramp up of Reliance’s FMCG business, launch of Airfiber to catapult wireless broadband penetration and a new affordable 5G smartphone to monetise its pan-India standalone 5G network by end 2023 along with IPO of Jio and/or retail are all possible large triggers in the second half of FY24. Jefferies reiterated its buy recommendation on Reliance Industries with a price target of Rs 3,100. The brokerage sees limited downside to RIL’s earnings and also little value being ascribed to the company’s new businesses (e-commerce, green energy, FMCG, financial services and new petrochemical investments) at its current market price.

It must also be noted that the gains in Reliance shares are on a day when the market is witnessing a relatively positive sentiment, tracking a rebound in global equities on temporary relief from the rescue of financial heavyweight Credit Suisse, although contagion fears in banking cast a shadow.

Tags:

ats-euromaster listed on couponmatrix.ukchums listed on couponmatrix.ukeneba listed on couponmatrix.uknkuku listed on couponmatrix.ukprestige listed on couponmatrix.ukzara listed on couponmatrix.uk
ats-euromaster listed on couponmatrix.ukIf you own a car, you’ll know all about the importance of maintenance. ATS Euromaster will take care of all your maintenance including MOT servicing, tyres and a whole lot more. Utilise a ATS Euromaster discount code and make sure your tyres have tread, your battery has juice and your brakes are working for less. With over 50 years of experience and hundreds of locations around the country you can be assured of being in good hands with one of the country’s most respected garage chains.
chums listed on couponmatrix.ukWith more than 30 years of experience, Chums is an outfitter you know you can rely on when you’re looking for affordable, stylish clothing, homeware and mobility gear. Grab a Chums discount code and pile your basket high without breaking the bank, whether you’re looking for socks, clocks, crutches or tableware. Chums has lots of great products on offer at prices you’re going to really love, so check out what’s available today.
eneba listed on couponmatrix.ukWhether you’re looking to crown yourself king of the realm or shoot your way to the top of the leaderboards, Eneba has the games you crave at reasonable prices. PC and console gamers alike can indulge in hours of playtime for less with an Eneba discount code handy, so there’s no reason not to grab a key even when shopping on a budget. With game deals, gift cards and in-game currencies going for a pittance, it’s easy to see why so many gamers switch up to Eneba.
nkuku listed on couponmatrix.ukEffortlessly elegant and timelessly trendy, Nkuku are experts in creating immaculate furnishings that brings an air of simplistic beauty to any home. Be it a marble dining table for your family banquets or brass candlesticks for those romantic nights in with your favourite person, a Nkuku discount code is all you’ll need to set the mood for a fraction of the price. Bolstered by a beautiful array of light fixtures, kitchenware and storage solutions, there’s no reason not to add the Nkuku charm into every element of your home.
prestige listed on couponmatrix.ukKitchens run more smoothly with Prestige Cookware, whether you’re frying an egg or winning Come Dine Wine Me. Use a Prestige discount code from Groupon to save on the best-quality cookware: from plant-based pans and energy-saving pressure cookers to bakeware sets and oven trays. Whether it’s student discount, free delivery or shopping in the Prestige sale, we can help home cooks save money on everything they need for a five-star dining experience.
zara listed on couponmatrix.ukAlways one step ahead of the fashion curve, you’ll never go out of style in a fantastic Zara outfit. Founded in Spain in the late 1980s, Zara is well renowned for getting the latest fashions just right, something which has allowed them to expand and become one of the biggest fashion retailers in the world. Grab a Zara discount code to get the latest Zara staples at all-new low prices and shop in confidence thanks to their ‘Life’ campaign; taking advantage of recycled materials to improve their carbon footprint with every outfit.