India's largest oil and gas stock, Reliance Industries (RIL) surged by nearly a per cent during Muhurat trading session of November 1, which comes after a bearish week. Reliance stock has corrected significantly after its Q2 results and bonus issue record date. The company has rewarded investors with nearly 677 crore equity shares as bonus. With the new hindu calendar year, SAMVAT 2081, should you buy or sell Reliance stock and what will be its new target price?
Reliance Industries Share Price:
After market hours of November 1, Reliance stock stood at Rs 1339.10 apiece, up by 0.5% on BSE, with market cap of Rs 18,12,120.05 crore. The stock that time surged to hit an intraday high of Rs 1341.00 apiece.
Reliance Industries Bonus Shares Allotment:
On Tuesday, Reliance announced that it allotted 676,61,86,449 equity shares of Rs. 10/- (Rupees Ten only) each as fully paid-up bonus equity shares, in the proportion of 1:1, i.e., 1 (One) new fully paid-up equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each, to the eligible members of the Company whose names appeared in the Register of Members / Register of the Beneficial Owners, as on October 28, 2024, the 'Record Date' fixed for this purpose.
Post the bonus issue allotment, the paid-up equity share capital of the Company stands increased to Rs. 13532,37,28,980 divided into 1353,23,72,898 equity shares of Rs. 10/- each.
The bonus issue ratio was 1:1. This will be the first bonus issue by Reliance in seven years. The last bonus issue was also of 1:1 ratio in September 2017. While Reliance's first bonus issue was also 1:1 in November 2009.
BUY Reliance Stock?
In its SAMVAT 2081 top picks, JM Financial's note said, "RIL is a diversified conglomerate with businesses spread across Oil to Chemicals (Oil Refining and Petrochemicals), E&P, Digital Services, Retail, Media & New Energy. The company plans to grow its revenue from Jio and retail businesses in the next 3-4 years. Additionally, its focus on green energy positions it well for the future."
Also, JM's note added that earnings growth momentum to remain strong across segments and it expects 15% PAT CAGR over FY24-27E. Accordingly, JM fixed a target price of Rs 3,500 on Reliance.
Further, HDFC Securities has recommended BUY on Reliance for SAMVAT 2081.
HDFC Sec's note said, "Given the large technological advancements and ambitious growth targets, Reliance's Retail, Telecom, and new energy segments are poised to become the upcoming growth drivers over the next two to three years. The company aims to double its EBITDA in the next five years, powered by 5G opportunities, increased investments in AI/data centers, further expansion in Retail and the start of PV/battery facilities in New Energy. The company could report a consolidated revenue/EBITDA/PAT CAGR of approx. 19%/14%/16% over FY24-26E. Investors can buy in the Rs. 2447-2716 band for a target of Rs. 3243 (23.5x FY26E EPS) till next Diwali."
Reliance Industries Limited (RIL) is a Fortune Global 500 company and the largest private sector company in India. RIL is a diversified conglomerate with business interests across oil refining, petrochemicals, exploration and production, retail, and digital services.
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