Reliance Industries share price rises after CLSA turns bullish on retail business, maintains buy call
BusinessToday.In February 28, 2019
The Reliance Industries share price rose in early trade today after brokerage CLSA gave a buy call with a target price of Rs 1,500. Reliance Industries share price rose 1.39% to 1,239 level compared to the previous close of 1,222.45 on the BSE. Reliance Industries share price opened 0.69% higher at 1,231 level on the BSE.
27 of 36 brokerages rate the Reliance Industries share "buy" or 'outperform', five "hold", two "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.
The Reliance Industries share price was trading above its 50-day and 200-day moving average of 1,217 and 1,170 levels, respectively.
Reliance Industries share has gained 29.33% during the last one year and 9.88% since the beginning of this year. Turnover for Reliance Industries stood at Rs 12.27 crore with 1 lakh shares changing hands on the BSE.
CLSA said Reliance Retail has continued to show strongest growth.It was also the most improved retailer on key profitability metrics and more focused on expanding its footprint than listed peers.
Reliance Industries, India's largest company by market valuation, operates retail consumer businesses under Reliance Retail Ventures, which further operates under two different retail ventures, Reliance Brands and Reliance Retail Ltd.
While Reliance Brands handles joint ventures with global fashion brands, Reliance Retail Ltd has over 9,900 stores in over 6,400 cities across India.
Reliance Retail Ventures could launch its IPO by June this year as Mukesh Ambani-led company is betting big on its consumer businesses, including Reliance Retail and Reliance Jio.
The development bears significance as RIL Chairman Mukesh Ambani in his 2017 shareholder meeting had said Reliance Retail was a business with significant growth possibilities. "I have set our leadership a target of 30 per cent growth each year over the next decade," he said.
He had also promised the shareholders that Reliance Retail Ventures would be aggressively expanded in rural and semi-urban markets for achieving the 30 per cent growth annually over the next 10 years.
The retail business, which completed 11 years of full-fledged operation in 2018, had recorded revenues of Rs 69,198 crore in the last financial year, a 105 per cent growth compared to the previous year. A year before that, the company grew 60 per cent.
Edited by Aseem Thapliyal