Reliance Industries Ltd (RIL) shares continued to rally for a third consecutive day, inching up around 1% to hit a fresh record high on Tuesday.
At 10:20 am, RIL shares were trading flat at Rs 1,561.85 apiece after hitting a high of Rs 1,576.35 in early session. Market capitalization stood at Rs 9.9 lakh crore, just shy of the Rs 10 lakh crore milestone.
RIL shares have returned nearly 9% in the last one month and a massive 41% in the last one year to investors on the back of improved outlook for the company’s consumer businesses — telecom (Reliance Jio) and retail (Reliance Retail).
In fact, the recent rally in RIL shares was triggered after Reliance Jio last week announced that it would be raising voice and data tariffs soon. The company said the Telecom Regulatory Authority of India (Trai) is likely to initiate consultation process for revision in telecom tariffs. “Like other operators, we will also work with the government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments,” it said in a statement.
Following the announcement, global brokerage firm Morgan Stanley, while maintaining its overweight call on RIL, announced its bull case target price at Rs 2,000 per share on hope of higher refinery margins, potential telecom tariff hike, bottoming P/E cycle, kickstart of gas production, lower capex and ongoing deleveraging.
Goldman Sachs also maintained its ‘buy’ rating on the RIL stock, saying, “Recent news around telecom tariff hikes could create potential upside risk to our estimates and valuation for RIL.”Disclaimer: News18.com is part of Network18 Media & Investment Limited which is owned by Reliance Industries Limited that also owns Reliance Jio.