Reliance Industries stock jumped as much as 3 per cent after analysts at Citigroup upgraded their rating for the stock to a ‘buy’ rating on November 25. The analysts also raised the price target for the stock to Rs 1,530, implying a 21 per cent upside potential from Friday’s close.
The brokerage believes the risk-reward dynamics for the stock have shifted favourably, boosted by several favourable conditions.
At 10 am, Reliance Industries shares were the top gainers on the Nifty 50, trading at Rs 1,295 on the NSE.
Citi expects an improvement in refining margins, mainly due to declining export competitiveness from China. On the telecom front, Jio is well positioned to benefit from potential tariff hikes and opportunities to raise data pricing, while monetising its 5G rollout, the brokerage said.
However, the brokerage also pointed out that the slowdown in Reliance’s retail segment could persist for the next few quarters. Despite this short-term challenge, Citi remains optimistic about Reliance’s long-term growth prospects across its diverse business lines.
Reliance Industries reported a 9.4 percent sequential rise in July-September net profit to Rs 16,563 crore, led by strong performance in its telecom and retail segments.
Revenue from operations stood at Rs 2.35 lakh crore in the September quarter, marginally lower than Rs 2.36 lakh crore recorded in the previous quarter.
