Reliance Industries shares were trading volatile fluctuating between gains and losses on Tuesday. Reliance share price fell 0.7 per cent after gaining nearly 1 per cent in the opening deals. The opened in the green a day after the Mukesh Ambani-led company’s 45th AGM discussed plans on 5G launch, FMCG foray, new energy investments, and succession plan. Earlier, on Monday after the company’s AGM, Reliance share price settled in red at Rs 2,596.80 apiece. At least three research and brokerage firms have given rating to the stock after the company’s FY22 AGM. Motilal Oswal Financial Services, and JM Financial Services have given buy rating to it, while ICICI Securities has given ‘add’ rating to it.
Reliance share price movement on AGM days
Reliance Industries share price ended 0.7% down at Rs 2,600 on Monday. In the last five years, shares of RIL share price saw mixed trends on the company’s AGM day. Last year, in 2021, RIL share price declined 2.4 per cent to close the day at Rs 2,153.50 apiece. In 2020, RIL share price on AGM day fell 3.8 per cent; while in 2019, stock markets were closed on RIL’s AGM day due to Bakri-id, but the stock soared 9.72 per cent on the next day.
Reliance share: Is more upside on cards? Should you buy?
JM Financial Services
BUY | Target price: Rs 2,950 | Upside: 13.6%
Analysts at JM Financial Services said that continued high capex is a key near-term concern. “We maintain buy (unchanged TP of Rs 2,950 per share) given RIL’s industry leading capabilities across businesses and expectation of strong 14-15% EPS CAGR over the next 3-5 years,” it said. They also added at CMP, the stock is trading at FY24E P/E of 24.7x (3-year avg: 22.0x) and FY24E EV/EBITDA of 12.6x (3-year avg: 12.6x).
Motilal Oswal Financial Services
BUY | Target Price: Rs 2,880 | Upside: 11%
Analysts value the Refining and Petrochemical segment at an FY24 EV/EBITDA ratio of 7.5x, arriving at a SoTP valuation of Rs 721 per share for the standalone business. “We ascribe an equity valuation of Rs 1,027 per share to RJio and Rs 1,202 per share to Reliance Retail, factoring in the recent stake sale,” they added. Motilal Oswal Financial said that their higher EV/EBITDA multiple of 41x for Retail and 19x for Digital Services, underscore new growth opportunities in the Digital space and steady market share gains. “We reiterate our BUY rating
with a target price of Rs 2,880,” they said.
ADD | Target Price : Rs 2,598
Analysts at ICICI Securities made minor reductions to FY23-24E EPS by ~1% and TP by ~2% to factor higher capex and hence, higher depreciation costs and higher interest costs. “We remain cautious on the upside with our concerns on low return ratios, muted FCF yields and limited potential for any return of cash to shareholders keeping risk-reward balanced. Reiterate Add,” they said.
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