The shares of Reliance Industries (RIL) jumped over 3 percent on March 7, taking the benchmark indices higher with it, as investor interest surged after international brokerage Macquarie recommended an 'Outperform' on the stock with a higher target price of Rs 1,500.
Macquarie upgraded its recommendation on RIL to 'Outperform' from 'Neutral' and raised the target to Rs 1,500 per share, implyin an upside potential of over 20 percent from current market price. The note said better earnings momentum going ahead and a potential listing of the Jio telecom unit are major positive factors supporting the shares.
The shares of the Mukesh Ambani-led company were trading at Rs 1,249 apiece on NSE, as seen at 1.54 pm. RIL’s shares have now extended gains for a third session, supported by positive brokerage notes by Jefferies and Kotak Institutional earlier this week.
The index heavyweight was the top contributor on Sensex on March 7.
Macquarie analysts Aditya Suresh and Baiju Joshi said in the note that consensus earnings estimate for FY26 and FY27 now seem to be ‘fair’, after a 12-17 percent cut over the past one year.
Recently, Jefferies reiterated its 'Buy' call on RIL with a target price of Rs 1,600 per share, citing future growth in the retail business and a potential tariff hike in the telecom unit. The target price implies an upside potential of over 28 percent from the current market price. In its note, the brokerage had said that the pessimism around the stock seems of be overblown and expects RIL's retail growth to recover to 15 percent in the upcoming financial year (FY26).
Kotak Institutional Equities said the recent decline in the share price has made valuations attractive, while upgrading the stock to 'Buy' from the earlier 'Add' rating with a target price of Rs 1,400. The Kotak note added that any news flow around the potential IPO of Reliance Jio and a potential tariff hike in the telecom business could act as catalyst.
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