Brokerage firm CLSA maintained a bullish call on Reliance Industries even as the stock has seen a huge correction recently.

What Happened: Reliance’s share price has fallen more than 20% from its highs in July. The company in its Q2 results saw its bottom line decline by 4.8% to ₹16,563 crore. The conglomerate's revenue was marginally up by 0.2% to ₹2.31 lakh crore. 

What The Brokerage Said: CLSA maintained an "outperform" call with a target price of ₹1,650, indicating a 29% upside from the previous day's closing price. The brokerage said the stock was within 5% of conservative value with 30% upside triggers in 2025.

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According to the research firm, Reliance's soon-to-be-launched solar PV gigafactory is a trigger that the market is ignoring. The brokerage after using a peer valuation, valued Reliance's solar business at $30 billion (₹2.53 lakh crore) and the overall new energy business at $43 billion (₹3.62 lakh crore). 

However, the brokerage added that this is offset by a 2-7% cut to FY25-27 earnings per share and a reduction in its valuation for the retail business. 

Reliance recently announced to invest ₹65,000 crore to build biogas plants in Andhra Pradesh.

Price Action: Shares of Reliance Industries were down1.28% to ₹1,257.95  on Wednesday.

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