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Brokerages have raised their target prices for Reliance Industries Ltd (RIL) shares, implying an upside of as much as 20 percent from Tuesday's closing price. The RIL stock rose as much as one percent after CLSA said a big jump in the oil-to-conglomerate's cash flow is aided by its working capital.

The brokerage also mentioned improvement in the conglomerate's return on equity (RoE) — a gauge of a business's profitability — and a further fall in its leverage ratios — a lower reading is a sign of a financially responsible business.

CLSA maintained a 'buy' rating on the oil-to-telecom conglomerate's stock. It raised its target price for the stock by 7.6 percent to Rs 3,180.

Morgan Stanley also raised its target price for the Reliance stock but maintained a 'hold' call. Its revised target price for RIL shares stands at Rs 2,620, as against Rs 2,580 earlier.

The brokerage said it expects to hear about the group's aspirations for its 5G telecom business as well as its distribution plans.

On the retail side, it expects to learn about how Reliance is integrating with kirana shops.

The RIL stock turned flat in afternoon deals amid overall volatile trade on Dalal Street. At 1:30 pm, it was down 0.1 percent at Rs 2,644.3 apiece on BSE.

Deven Choksey of KRChoksey suggests using any dip in the stock price to buy Reliance shares.

"During any correction, it is a good opportunity to buy into the stock. We continue to believe that it is a 25 percent kind of an appreciation provider on a yearly basis at least for the next five years," he told CNBC-TV18.

Reliance Industries shares have rewarded investors with a return of 9.3 percent in the past one month, a period in which the benchmark Nifty50 has risen 4.9 percent.

The company is will conduct its 45th annual general meeting (AGM) at 2 pm on August 29.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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