Reliance Industries share: Check the new target price post partnership with Gap

Shares of Reliance Industries Ltd (RIL) were trading flat in early trade even as the conglomerate's retail venture Reliance Retail said that it will bring to India the products of American fashion brand Gap, through a long-term franchise agreement. Reliance Retail has become the official retailer for Gap across all channels in India with partnership.

Amid the news of Reliance Retail joining hands with Gap, JPMorgan has given a target price of Rs 3,170 for RIL with an overweight stance on the stock.

The US financial services firm said it sees investor concerns around regulatory risk post diesel export tax. However, it expects strong first quarter earnings driven by O2C.

The brokerage sees diesel export tax as a one-off, though at this point have no visibility as to what would drive it lower. It does not see a wider impact on the firm's other businesses.

ALSO READ: Reliance partners with Gap, to launch the iconic American fashion brand in India

Reliance Retail will introduce Indian consumers to Gap's most recent fashion offerings through a combination of exclusive brand shops, multi-brand store expressions, and e-commerce platforms.  

The partnership aims to leverage Gap's position as a top casual lifestyle brand and Reliance Retail's proven capabilities in running strong omnichannel retail networks, increasing local production, and enhancing sourcing efficiency.

Meanwhile, shares of Reliance Industries were trading 0.66 per cent lower at Rs 2,396 against the previous close of Rs 2,411.95 on BSE.

Reliance Industries stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

RIL share has gained 13.55 per cent in one year and risen 1.18 per cent since the beginning of this year. Total 1.81 lakh shares of the firm changed hands amounting to a turnover of Rs 43.40 crore on BSE.

ALSO READ: Reliance Industries shares plunge over 8%, here's why

Market cap of the conglomerate stood at Rs 16.20 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2, 016 on July 28, 2021.