Shares of Reliance Industries halted the eight-session losing streak on Tuesday a day after the stock slumped to its 52-week low of ₹2,180.
What Happened: Shares of the Mukesh Ambani-led conglomerate have been having a tough time at the bourses this year. The stock is down around 12% year-to-date. The company’s consolidated net profits took a 15% year-over-year hit in the December quarter at ₹15,792 crore missing consensus estimates.
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However, global analysts have remained strongly bullish on the stock. JP Morgan, Jefferies, and CLSA see over 30% upside in the stock. JP Morgan maintained its ‘overweight’ rating on the stock with a price target of ₹2,960. Jefferies and CLSA also maintained ‘buy’ on the stock with target prices of ₹3,100 and ₹2,960 respectively.
The analysts think that the company is at an attractive valuation for long-term investors to make an entry. CLSA in their research note said that the stock at this valuation is a ‘bargain buy.’ The note also said that the companies ramping Jio 5G services and recent new launches (Campa Cola) in the FMCG sector will help drive the stock going further.
Price Action: Reliance Industries shares were up 2.74% to trade at ₹2,261.45 on Tuesday afternoon.
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