Reliance Industries Share: Brokerage firm Nuama has a b belief in Mukesh Ambani's Reliance Industries (RIL). Due to this, it has increased the share's target price to ₹1,801 per share.
Mukesh Ambani's company, Reliance Industries Limited (RIL), is once again at the center of the stock market. Around 12:50 PM on Tuesday, Reliance's share rose by about 1.9 percent to reach ₹1,529. A major reason for this was the report by brokerage firm Nuama Institutional Equities, which increased the company's target price to ₹1,801 per share. Nuama has also maintained a 'Buy' rating on Reliance's shares.
Company's Big Bet on New Solar Modules
Reliance Industries has recently taken a big step in the solar segment. The company has started manufacturing solar modules based on 1 gigawatt of HJT i.e. Heterojunction Technology. The company aims to increase this capacity to 10 gigawatts by 2026.
This module operates at an efficiency of 23.1 percent, which produces more electricity than standard solar panels. This step is considered a major initiative towards India's clean energy goals. Nuama believes that Reliance will first sell this module in the domestic market, as plants related to electricity generation will still take time.
Profit Expected from New Energy Plan
According to Nuama, Reliance's new energy strategy can bring a big change in the company's earnings. The brokerage believes that in the coming years, the company's profit from this segment could increase by up to 50 percent. Not only this, considering the target of net-zero carbon emissions by 2035, the valuation of the company's traditional O2C i.e. Oil to Chemical business will also change.
Reliance's O2C segment currently contributes more than 40 percent to EBITDA and more than 50 percent to PAT i.e. net profit. But with the expansion of the new energy business, the source of the company's earnings is now becoming more diverse.
Market's Eyes on the Next AGM
The brokerage firm has said in its note that special attention should be paid to Reliance's next annual general meeting (AGM), which is to be held in August-September. It is expected that the company may make new announcements in this AGM, which can further excite investors and the market.
Big Investment is Happening in These Areas
Reliance Industries is not limited to solar modules only. The company is currently making big investments in many other areas as well. This includes the construction of a 30 gigawatt battery manufacturing facility, green hydrogen and electrolyzer units, and 55 CBG i.e. Compressed Biogas plants. The company's target is to set up 50 CBG plants in the near future.
Highest Target Price in the Market
Nuama has said that the target of ₹1,801 per share they are giving for Reliance is the highest target price in the market at present. They have based this on SOTP i.e. Sum-of-the-Parts valuation. The report also states that there may be more profit than expected in the solar module business, which strengthens this target.
Reliance's Recent Performance
Reliance's share has remained relatively stable for the past few months, but the company's strategic decisions have once again attracted the attention of investors. According to brokerage houses, the way the company is rapidly moving forward in green energy, digital India, and the retail segment, the company's valuation may increase further in the coming time.
Strong Grip in the Market
Reliance Industries' hold is not only b in the oil and gas sector, but the company is now presenting itself as a future-focused energy and technology company. From digital infrastructure to green energy, Reliance is increasing investment on every front.
Looking at the reports of brokerages and the increasing interest of investors, the movement of RIL shares in the coming days can be quite interesting.
