Brokerages expect further upside in Reliance Industries, which has already surged more than 150 percent from its March lows. On the back of a string of investments in Jio Platforms and becoming a zero net-debt company, the share price of RIL has jumped as much as 153 percent from its 52-week low of Rs 867.82 hit on March 23 to its all-time high of Rs 2,198.70 per share.

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RIL has become the first Indian company to cross Rs 13 lakh crore in market capitalisation.

Global brokerage firm Goldman Sachs has raised RIL's target to Rs 2,325 per share for a 12-month period while maintaining a 'buy' call. The brokerage raised valuation on faster e-commerce rollout and monetisation at Jio Platforms.

CLSA also raised the stock's target price to Rs 2,250 per share from Rs 1,753 earlier. However, the brokerage firm downgraded RIL to 'outperform' from 'buy'. CLSA factors in a street high valuation for Reliance Jio and Reliance Retail and expects the company's market cap to rise to $220 billion by March 2022.

The company's long-term promise and an underweight position in portfolios may support the stock price, added CLSA.

Other major brokerages have also raised the target price for the stock post its annual general meeting (AGM) where RIL chairman Mukesh Ambani made major announcements, particularly on indigenous 5G technology development, JioTV among others.

In the first-ever virtual AGM, Ambani announced that Google is buying a 7.7 percent stake for over Rs 33,000 crore in Jio Platforms. He also talked about the expansion of Reliance Retail and spinning off the oil-to-chemicals business into a separate subsidiary.

In another report, Nomura noted that for the sixth consecutive year, the oil-to-telecom-to-retail conglomerate has outperformed the benchmark Nifty50 index. On a year-to-date basis, RIL has jumped 43 percent as compared to an 8 percent fall in the broader NSE Nifty50 index. It added that while the valuations of the RIL stock are getting richer, it feels that the outperformance may sustain and hence, raised the target price on the stock to Rs 2,200 from an earlier target of Rs 1,900 per share.

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First Published:Jul 28, 2020 12:18 PM IST