Reliance Industries rises for the eighth straight trading day

The stock moved higher by 1.5% to Rs 986, rebounding 2.6% from its intra-day low today, rallied 7.5% in past eight trading days, as compared to 1.3% rise in the S&P BSE Sensex.

Shares of Reliance Industries (RIL) have moved higher by 1.5% to Rs 986 per share, rebounding 2.6% from their intra-day low of Rs 961 on the BSE.

RIL was quoting higher for the eight straight trading day, rallying 7.5% from Rs 917 on May 29, 2018, as compared to 1.3% rise in the S&P BSE Sensex. The stock hit an all-time high of Rs 1,011 on April 27, 2018 on the BSE in intra-day trade.

RIL is aiming to raise the level of its profits from consumer-facing businesses such as retail and telecoms to that of its core energy operations, the company said in its annual report on Thursday.

“Strong GRMs should continue, helped by a delay in the net addition to global refining capacity and strong demand growth with improving economic activity. RIL’s capex of USD 18.5bn in Refining and Chemicals is nearing completion. Some projects are already operational, and will boost EBITDA in the core business over FY17-20E. During the last five years, high capex in Telecom and Core business has dragged RIL's FCF. Rising dividend payouts are likely hereon. Jio continues to gain 4G subscriber share, making us constructive on the business,” analysts at HDFC Securities said in result update with ‘buy’ rating on the stock and 12 month target price of Rs 1,178 per share.

Reliance JIO, last month, announced their first post-paid tariff regime on a bundled basis. The newly announced tariff plan is for a flat Rs 199/month with sharply lower international calling rates (calling rates to the US at Rs0.5/minute).

JP Morgan believes some of the existing subscriber base of JIO might choose to upgrade to monthly post-paid tariff plans, which would be a positive. Overall the brokerage view JIO’s new offering as a positive and the move to target the high paying subscriber base of the incumbents is positive.