Reliance Industries rose 3 percent to Rs 1,170 per share on the NSE after brokerage firm Goldman Sachs forecasts about 34 percent upside in the stock.

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The GS report on the oil to telecom conglomerate reads that rapid earnings recovery and major step-up in the free cash flows are expected.

The brokerage revised the target price down by 2 percent factoring in the delayed Jio tariff hike. The potential delay is due to the ongoing coronavirus outbreak.

"Unique hedges in the hydrocarbon business will drive positive margins. The shares of the fast-growing consumer businesses will also reach about 50 percent over the next fiscal given the company's ability to raise market share from highly-leveraged peers, both in telecom and retail verticals", added the brokerage.

Goldman further added that they expect total EBITDA growth of 6 percent/39 percent/18 percent through FY21E-23E led by the sustained growth outlook for the consumer businesses, with Retail & Telecom contribution rising to over half of total by FY23E.

Another rumour spreading like a wildfire in the market is the possibility of a multipurpose app developed by Reliance Industries and Facebook.

Apparently, the idea is to create an app that will enable users to buy groceries, shop and even make payments, all in one app.

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First Published:Apr 16, 2020 1:25 PM IST