Shares of Reliance Industries Ltd (RIL) extended gains for the second session, rising 2% in early trade on Wednesday, after global brokerage firm Jefferies assigned a 'buy' rating for the stock with a target price of ₹3,100.
According to the brokerage, the stock has corrected 14% since December and trades at 18 times forward price to earnings (PE) - a discount to its lead time (LT) average.
"This is attractive in view of 18% earnings growth in FY24E. The current stock price imputes zero value to RIL's renewable business in our view. We expect investors to ascribe meaningful value to renewables when the first revenues are realised in calendar year (CY) 2024," said the brokerage.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock has bounced from long-term support of ₹2,300, and a further bounce may be expected towards ₹2,480. He believes, any dip can be considered as a buying opportunity.
The stock's weekly average delivery volume is 61.98%. The stock price has risen 3.5% and outperformed its sector by 1.4% in the past year.
Prashanth Tapse, Research Analyst, Sr VP Research of Mehta Equities Ltd, said that “multiply news is pushing Reliance Industries shares higher”.
"Major news was from the Jio segment, which is aiming to hit a minimum of 100 million 5G customers by the end of financial year 2024 (FY24) by covering all cities and over 6,000 tehsils," added Tapse.
According to a MintGenie poll, 30 analysts on an average recommend a ‘buy’ rating for the stock.