Reliance Industries shares rose for third straight session on Thursday to hit record high of Rs 2,776 on the BSE, data from stock exchange showed. The run-up in Mukesh Ambani-led company has led to its market capitalisation touch an all-time high of Rs 18.78 lakh crore, according to BSE. In the last three sessions the stock has jumped 9 per cent and has led the recovery in Sensex which was under pressure due to heavy selling by foreign institutional investors.
The company is firing on all cylinders with its three lines of business - telecom, refining and retail doiung extremely well and indicating that March quarter earnings will be better than street estimates, analysts said.
Here is what analysts expect Reliance Industries to perform going ahead:
"Refining is doing extremely well and market observers were expecting GRMs around $20 will not be sustainable but they are there since October and will continue to remain strong. They are making good cash flow refining business. Secondly, Jio is doing quite well they have gained a lot of market share from Idea and the sector has been witnessing price rises and retail business is also doing good. The stock went through a period consolidation in last 12-18 months and now it has just started moving. I am bullish on the stock and expect 10-15 per cent upside in the near term," Varun Saboo, director institutional equities at Prabhudas Lilladher told Outlook Business.
"Crude oil prices have remained positive throughout Q4FY22. Hence, the market is expecting big improvement in GRM leading to strong Q4 results. So, bulls have been pumping money in RIL shares for the last three sessions despite weak sentiments and that the petrochemical business will grow spectacularly. Jio and the retail industry can also do much better," said Ravi Singhal, vice chairman at GCL Securities.
"RIL is trending high after the firm sought to be the world's top blue hydrogen maker. Earlier in February the firm said it will re-purpose a Rs 30,000 crore plant that currently converts petroleum coke into synthesis gas for producing blue hydrogen at $1.2-1.5 a kilogram. This new energy business will boost the net asset value of the company. RIL stock price may touch the levels of Rs 3,000 from the current price, in near term," said Ravi Singh, vice President and head of research at ShareIndia.