On Tuesday, April 29, Reliance Industries experienced a notable rise in its stock price, marking a second consecutive day of gains following impressive fourth-quarter results. The stock opened at ₹1,370.35, slightly above the previous close of ₹1,368.50, and surged as much as 3% to reach ₹1,410.90 during intraday trading. Ultimately, it closed at ₹1,400.30, reflecting an increase of 2.32%. Over the two days, the stock has seen a remarkable growth of nearly 8%, solidifying its position as India’s largest company by market capitalization.

Positive Q4 Results Fuel Stock Surge

Reliance’s recent financial performance in Q4FY25 exceeded market expectations, showcasing a 6% year-on-year increase in consolidated profits. This impressive growth was largely attributed to a rebound in its retail operations and improved earnings from its telecom division. However, challenges persist for its core oil-to-chemicals (O2C) segment.

• Key Financial Highlights:
  • Q4FY25 consolidated profit increased by 6% YoY.
  • Retail business showed significant improvement.
  • Telecom segment also reported better-than-expected results.

Additionally, the company’s board has approved a significant fundraising initiative, allowing for the acquisition of up to ₹25,000 crore through the issuance of redeemable non-convertible debentures.

Analysts Show Optimism

In the wake of Reliance’s impressive quarterly performance, multiple brokerage firms have expressed optimism about the stock’s potential. Analysts are particularly bullish on the company’s robust retail and telecom operations, as well as the anticipated growth in its new energy ventures.

• Analyst Ratings:
  • Nomura: Maintained a "buy" rating, raising the target price to ₹1,650.
  • JP Morgan: Assigned an "overweight" rating with a target of ₹1,530.
  • Morgan Stanley: Also holds an "overweight" stance with a target of ₹1,606.
  • Macquarie: Retained an "outperform" rating with a target of ₹1,500.
  • Motilal Oswal: Reiterated a buy rating with a target of ₹1,515.

Kotak Securities has also revised their forecast, increasing the stock’s fair value to ₹1,520. Analysts suggest that the completion of 5G investments may stabilize capital expenditures, making the stock an attractive option amidst improving retail revenues and potential telecom IPO announcements.

Future Outlook and Investment Strategy

Looking ahead, Reliance’s share price is poised for continued growth, driven by its favorable outlook in key sectors like telecom, retail, and new energy. However, the market’s volatility suggests that investors should remain cautious, as profit booking could occur intermittently.

Currently, Reliance’s stock is trading about 13% below its 52-week high of ₹1,608.95, achieved on July 8 of last year. This dip presents potential for future appreciation, and experts like Jigar S. Patel, Senior Manager at Anand Rathi Share and Stock Brokers, advocate for accumulating shares during price dips. Patel suggests a medium-term target of ₹1,550, recommending that investors consider a stop-loss if the stock dips below ₹1,300.

• Investment Recommendations:
  • Target price of ₹1,550 in the medium term.
  • Accumulate on dips up to ₹1,350.
  • Implement a stop-loss at ₹1,300 to manage risk.

Patel noted a significant technical breakout, indicating renewed investor interest in Reliance shares, as the stock has surpassed long-standing resistance levels, signaling potential bullish momentum.

For more insights on market trends and investment strategies, feel free to explore our comprehensive financial articles.