RIL shares flat since the start of US-Israel and Iran war: Price targets and more

Shares of Reliance Industries Ltd (RIL) have gained 0.98% since the start of US-Iran war. Sensex and Nifty on the other hand, took a 10% hit during the period. The stock of the index heavyweight was expected to be a major beneficiary of the war since RIL is one of the largest oil and gas exploration and production players in India.

The recent rally in brent crude prices to a 52-week high of $119.50 was expected to boost the RIL stock during the stock market correction.

According to brokerage JM Financial, Reliance is likely to see near-term benefits from the rise in energy prices, backed by a rise in diesel refining margins and a potential improvement in petrochemical spreads.

Every $1 per barrel increase in Reliance’s gross refining margin could raise annual EBITDA by about Rs 45 billion, or roughly 2.2 percent, JM Financial said, while also adding about Rs 29 per share, or 1.7 percent, to the company’s valuation.

Also, the Mukesh Ambani-led conglomerate is expected to witness a possible rise in petchem margins since product prices rise in line with crude oil prices.

The company’s petrochemical feedstock mix comprises roughly 25 percent ethane, 50 percent off-gases and about 25 percent crude-linked naphtha, providing some insulation from higher crude costs.

Jigar Patel from Anand Rathi said, "Support will be at Rs 1390 and resistance at Rs 1435. A decisive move above the Rs 1435 level may trigger a further upside of Rs 1450. The expected trading range will be between Rs 1390 and Rs 1450 for the short-term."

Motilal Oswal is bullish on the RIL stock with a price target of Rs 1750.

"We believe that even if tensions ease soon, supply chain normalization may lag, keeping product cracks elevated and supporting Reliance Industries’ (RIL) refiningpetchem margins," said MOSL.

Meanwhile, in the current session, RIL stock was trading 1.08% higher at Rs 1426.65. Market cap of the firm stood at Rs 19.30 lakh crore today.