Reliance Industries share price rose to its fresh 52-week high in trade today amid report its subsidiary Reliance Industrial Investments Holdings plans to raise Rs 13,900 crore through a rights issue of non-cumulative optionally convertible preference shares.
Reliance Industrial Investments Holdings is the investment arm of India's most valuable company. Reliance Industries share price hit a yearly high of 1,413 level compared to the previous close of 1,391 on BSE.
Reliance Industries share price has been gaining for the last three days and risen 2.22% during the period. Reliance Industries share price has gained 44.44% during the last one year and risen 25.34% since the beginning of this year.
24 of 46 brokerages rate the stock "buy" or 'outperform', eight "hold", two "underperform" and two "sell", according to analysts' recommendations tracked by Reuters. The RIL share price closed above its 50-day and 200 day moving average of 1360 and 1209, respectively.
Reliance Industries share price closed 0.96% higher at 1405 in an otherwise weak market.
Manish Yadav, Head of Research at Capital Aim said, "The surge seen in the price of Reliance Industries stock after Q4 results can be attributed to its increased focus on retail business. Addition of stores will enhance brand visibility and can dramatically improve the volume of business in the short term. We expect Reliance to continue its upward move and lead the market, provided that the general election results do not upset the current market expectations. We do not recommend a buy at 1400 plus levels. Investors can start accumulating it after correction at sub-1,200 levels. On the upside, we expect that the stock will trade around 1,700 levels in a year but if the market starts correcting due to turbulence in global markets, it may correct sharply up to 1100 levels."
Rahul Agarwal, Director at Wealth Discovery /EZ Wealth said, "Reliance Retail, the retail arm of Reliance Industries, gears to enter e-commerce in the next few months, and prepares to officially launch world's largest online-to-offline new e-commerce platform. Also Reliance Jio is reportedly working on a super app that will provide over 100 services at one platform. Reliance Industrial Investments Holdings Ltd (RIIHL), the investment arm of Reliance Industries, plans to raise Rs 13,900 crore through a rights issue of non-cumulative optionally convertible preference shares and the funds will be used for acquisitions and to meet the group's other funding requirements. We expect the stock to do well both in the short term and near term with limited downside risk. The stock is expected to witness some volatility and would broadly follow the market trajectory till the results of the general elections are out. Post election results, the stock will move on its own strength. Investors are advised to accumulate the stock at each dip with a long-term perspective."
In the fourth quarter of last fiscal, Reliance Industries reported a 9.8 per cent year-on-year growth in its consolidated net profit at Rs 10,362 crore . The company had posted consolidated net profit of Rs 9,438 crore in the same quarter last year.
The company's revenue grew by 19.4 per cent to Rs 1,54,110 crore in March quarter from Rs 1,29,120 crore in the year-ago period, driven by strong growth in retail and digital services businesses which grew by 51.6 per cent and 61.6 per cent, respectively. Higher petrochemical volumes also contributed to growth in revenue.
Edited by Aseem Thapliyal