The brokerage reportedly believes that investor's confidence is increasing in the earnings delivery while lower taxes and cheaper gas feed costs should de-risk the outlook.
The target price of Rs 1469 is 13.88% premium to the prevailing market price of Rs 1290.
On 13 September 2019, Reliance Services and Holdings, a part of promoter group, acquired 17.18 crore equity shares, or 2.71% stake, in RIL. The aggregate shareholding of the promoter and promoter group now stands at 309.80 crore shares, or 48.87% equity.
In its 42nd annual general meeting (AGM) on 12 August 2019, RIL chairman and managing director Mukesh Ambani said RIL ended last year with net debt of Rs 154,478 crore. The company has clear roadmap to becoming a zero net debt company within the next 18 months that is by 31 March 2021.
The Mukesh Ambani-owned telco Reliance Jio launched its fiber-to-the-home service Jio Fiber across the country on 5 September 2019. Jio Fibre plan starts with 100 Mbps speed and goes all the way up to 1 Gbps or 1000 Mbps. Jio Fiber plans are priced between Rs 700 to Rs 10,000 per month. Reliance Jio has invested nearly Rs 3.5 lakh crore towards creating a digital infrastructure across India, with the largest optical fiber footprint. Jios customer base has crossed 340 million users and it is signing up more than 10 million new customers each month.
Meanwhile, the S&P BSE Sensex was down 60 points or 0.15% to 39030.13.
The market surged in the past two sessions after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, RIL paid corporate tax of 25.76%.
On the BSE, 7.88 lakh shares were traded in the RIL counter so far compared with average daily volumes of 4.54 lakh shares in the past two weeks. The stock hit a high of Rs 1298.55 and a low of Rs 1242.05 so far during the day.
The stock hit a 52-week high of Rs 1417 on 03 May 2019. The stock hit a 52-week low of Rs 1017 on 25 Oct 2018.
The stock is currently trading 8.96% below its 52-week high and 26.84% above its 52-week low.
On a consolidated basis, the conglomerate's net profit rose 6.8% to Rs 10104 crore on a 21.9% increase in the net sales to Rs 156976 crore in Q1 June 2019 over Q1 June 2018.
Reliance Industries is an Indian multinational conglomerate company. The company owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
Powered by Capital Market - Live News
Beware of fraudulent tips, unauthenticated news and advice on stock market.
At BOB Capital, your account security is our topmost priority. Beware of receiving fraudulent communications, unauthenticated trading tips and unsolicited calls on trading in stocks from unverified sources, received through Whatsapp, Telegram, SMS, Calls, etc and take an informed decision before investing.
What should you do if you receive a trading tip over phone or SMS?
Report unsolicited messages to the Stock Exchange on +91 8291833676 or on designated email id i.e. feedbk_invg@nse.co.in. Please visit here to understand better.
Valued Customer,
BOB Capital Markets Limited (BOBCaps) is firmly committed to the safety of your wealth. We would like to bring to your notice certain precautions that you certainly must take against potential tele-fraudsters/ unscrupulous and unregistered portfolio managers:
ALWAYS AVOID
Certain tele-fraudsters / unscrupulous and unregistered portfolio managers call customers or SMS them on the pretext of providing investment tips and lure them to invest through their bogus firms by promising huge profits. Such deceitful callers ask the customer to share his/her login credentials with passwords to allow trading in their accounts, assuring huge returns. Often trades done in the customer’s accounts are far from the best interest of the customers. Holdings of customers are often sold and with the funds, trades are then placed in illiquid securities at unrealistic prices. At times, the holdings of customers are sold at prices detrimental to the customer.
The so-called “portfolio manager” assures profits, which naturally does not materialize. Customers are deceived into providing access to their trading accounts, thereby allowing such fraudsters access to funds and securities available to execute trades, injurious to the customer’s interest.
We would like to caution you against such fraudulent calls and SMSes and urge you to be alert. Follow the golden rule:
Do not share your Login Credentials or Passwords with anybody
BOBCaps employees / representatives never ask for your password.
The following illicit activities by the persons named herein have come to the notice of Stock Exchanges: