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The brokerage now has an “outperform” rating on the stock against its previous rating of “neutral”. It has also increased its price target to ₹1,500 from ₹1,300 apiece. This is also an upside of nearly 24% from Thursday’s closing price of ₹1,211.5 per share. Shares of Reliance Industries were the top gainers on the Nifty 50 index on Thursday.
Macquarie has upgraded the stock noting a series of incremental positives that it anticipates for the oil-to-telecom-to-retail conglomerate over the next six months to 12 months.
Reliance Industries stock has underperformed the MSCI India index by 18 percentage points and Bharti Airtel by 60 percentage points over the past year, according to the note.
From its earnings per share (EPS) growing at just a Compounded Annual Growth Rate (CAGR) of 2% over financial year 2023-2025, Reliance Industries is likely to improve its earnings CAGR to 15% to 16% over financial year 2025-2027, according to Macquarie.
The brokerage mentioned three catalysts for the same — better earnings momentum, the potential listing of Jio and gradual commissioning of new energy capacities.
On Thursday, March 6, brokerage firm Kotak Institutional Equities upgraded its rating on Reliance Industries to “buy” from “add” and set a price target of ₹1,400 apiece. A subdued retail segment was the key reason for the weak performance in recent times, but Kotak Institutional Equities expects the store-rationalisation cycle to end soon.
Of the 38 analysts that have coverage on the stock, 35 have a “buy” rating and three have a “sell” rating.
Reliance Industries ended the previous session 3.05% higher at ₹1,211.5 apiece. The top Nifty 50 gainer jumped 3.5% to hit an intraday high of ₹1,251.9 apiece on Friday, March 7. The stock declined 15.33% in the past year.
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First Published: Mar 7, 2025 9:09 AM IST
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