Reliance Industries Share Price Highlights 28 June 2024: RIL hits ₹21-lakh cr mcap, gains over 2% on bullish analyst outlook

The New Energy giga-factories owned by RIL are anticipated to open in 2024. RIL aims to establish scale electrolyser and solar capacity by using significant captive hydrogen demand as an anchor. In the foreseeable future, investors shouldn’t anticipate significant EBITDA from these projects. On the other hand, better RIL communication on this matter might become a stock driver. Maintaining a net debt to EBITDA ratio of less than 1x, as per the company’s recent guidance, also suggests good free cash flow generation.

The scrip is witnessing pre-rollovers of 54%, with the next series showing aggressive put writers building up their positions convincingly at 2900PE, with more than 4,100 contracts overall. Call writers also hint at upside potential up to 3,200, with maximum fresh additions at 3200CE, with more than 445 contracts. The stock has been consolidating monthly between the 2850-2940 zones. A breach on the upside will likely trigger sharp momentum towards higher targets.

Jefferies on RIL

Recommendation: Buy, target raised to Rs 3,580

Key Points: Jio implements tariff hikes of 13-25 per cent, leading to adjustments in FY25-27 estimates by up to 3%. Expected revenue and profit after tax (PAT) CAGR of 18% and 26% over FY24-27, respectively. Minor tweaks in RIL’s FY25/26 EBITDA (0-1%) to incorporate Jio’s performance metrics.

MS on RIL

Recommendation: Overweight, target Rs 3,046

Key Points: RIL’s telecom tariff increases align with base case expectations. The ongoing monetisation of investments remains a strategic focus. Anticipates new energy cash flow streams starting by late 2024. No further tariff hikes are assumed until FY27, but the potential for another 20% increase next year could boost earnings by 10-15%.