CLSA Bullish on Reliance, Sees Shares at ‘Bargain Buy’; Pegs 32% Upside

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CLSA Bullish on Reliance, Sees Shares at ‘Bargain Buy’; Pegs 32% Upside
Credit: © Reuters.

By Malvika Gurung -- The most valued Indian firm Reliance Industries’ shares gained over 3% and snapped an 8-day losing run on Tuesday, after hitting a fresh 52-week low of Rs 2,183.1 apiece in the previous session.

The market behemoth’s stock jumped 3.12% in Tuesday’s session, hitting an intraday high of Rs 2,269.95/share after falling for eight straight sessions.

However, brokerage majors have continued to remain bullish on the oil-to-telecom conglomerate stock despite the recent stock rout.

Even though RIL’s stock hit a new 52-week on March 20, CLSA reiterated its ‘Buy’ tag on the mega-cap stock with a target price of Rs 2,970/share, depicting a 32% upside from the current share price.

CLSA states that the conglomerate stock has plunged almost 20% in less than four months, bringing its current price just 5% above its conservative valuation and making it available for a bargain buy at current levels as the price does not include the company’s growth plans going ahead.

The global brokerage also expects RIL to launch its retail or telecom arm’s IPO sometime over the next 12 months. “Despite rising 5G capex, consolidated leverage should remain under control and well below 2x its Ebitda,” it said on Monday.

CLSA’s latest coverage on RIL comes shortly after Jefferies reiterated its bullish stance on the mega-cap stock, setting a target price at Rs 3,100/share.

Read Also: Jefferies Bullish on Reliance Industries (NS: RELI ), Pegs 41% Upside & Notes Key Triggers

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