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Nifty giant RIL is at new high, investing in the stock can provide 20% returns, why is the legendary brokerage bullish?

Brokerage houses seem very bullish regarding the outlook of RIL. In particular, the company will get the benefit of energy upcycle.

RIL Stock Price Today: Nifty giant Reliance Industries i.e. RIL shares are seeing good growth today. RIL today gained about 2 percent to reach Rs 2777, which is a new high of 1 year. The stock has gained 15 per cent so far this year and 45 per cent in one year. Brokerage houses seem very bullish regarding the outlook of RIL. In particular, the company will get the benefit of energy upcycle. At the same time, the way the company has taken new initiatives regarding energy and has increased investment in it, its benefits will also go ahead.

New Energy Initiative

Brokerage house Motilal Oswal says that RIL has so far committed Rs 10900 crore under the New Energy Initiative. The company had announced to invest 75000 crores in this item in 3 years. That is, it seems to be going on the right track. At the same time, RIL has continuously strengthened its telecom and retail business and investors are also not hesitant to invest money in it. The value of these businesses is continuously increasing. The brokerage house has given investment advice in the stock with a target of Rs 2880.

Benefits of energy upcycle

Global brokerage house Morgan Stanel has given investment advice in the stock with a target of Rs 3253. Keeping in view the strong outlook of the company, the target has been increased. Earlier the brokerage had a target of Rs 2926 on the stock. This is 20 percent more than the current price. The brokerage says that the company will do well in the green hydrogen space. At the same time, due to being the leading company, it can get the maximum benefit of upcycle of energy. Brokerage house Goldman Sachs has also advised to invest in the stock with a target of Rs 3200. According to the report, the cash flow in the old energy business of the company is strong, which will ease the capex of the new energy business.

Results are expected to be better

Brokerage house ICICI Direct has also given a target of Rs 2950 while advising to invest in the stock. The brokerage expects the company’s results to be better. According to the report, the EBITDA of RIL can increase by 66.3 percent on an annual basis to Rs 38824.5. It can show 30.7 percent growth on QoQ basis. Good performance will also be seen from Jio and retail business. Due to the tariff hike, Jio’s monthly ARPU may increase by 8 percent to Rs 164 on a quarterly basis. Jio’s standalone revenue is estimated to grow 6.4 per cent on a quarterly basis to Rs 20,581 crore. Whereas EBITDA may increase by 8.1 percent to 10,288 crores. EBITDA margin may increase by 80 bps QoQ to reach 50 per cent.

(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews.in. Markets are risky, so take expert opinion before investing.)

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