Selling phase continues in the Indian stock market. Meanwhile, sometimes greenery is visible in the market. In such a situation, some investors are getting confused wondering whether this is the right time to invest or should the ongoing correction in the market be allowed to continue further? Because severe selling is being seen in large cap companies also. Reliance Industries shares have declined by 7.70% in the last one month. If you are also confused about investing money in Mukesh Ambani’s company, then you should read the latest report of foreign brokerage house CLSA.
Revealed in CLSA report
According to the report, there is a possibility of an increase of up to 70% in the shares of Reliance from the current level in the coming time. At present Reliance’s stock is trading at around Rs 1266 in the market. However, CLSA still believes that this decline is an opportunity for investors. Especially for those investors who want to invest in Reliance from a long term perspective. Let us understand the reason behind this.
CLSA says that Reliance’s $40 billion new energy business can soon fill the market. The company’s 20 GW solar gigafactory is ready for launch in the next 3-4 months. CLSA has given a valuation of $30 billion for the solar business, which is at a discount to currently listed solar companies. Despite this, according to the report, Reliance’s stock is trading in the five percent range of rainy-day valuation at zero value of new energy business.
Will the stock rise in 2025?
It has been emphasized in the CLSA report that many important events will be seen in the business of Reliance in 2025. New energy capacities will be inaugurated this year, which will give a new dimension to the company’s development. Apart from this, the company’s retail business is also likely to regain momentum. There are signs of growth in Reliance Jio’s AirFiber subscriber base, and there are also plans for an IPO of Reliance Jio. Due to all these reasons, there can be enthusiasm among investors regarding the future prospects of the company’s shares.
This is the new target price
CLSA has maintained Reliance shares with outperform rating and has given a target price of Rs 1650, which is 30% more than the current level. However, CLSA has also mentioned Blue-Sky Scenario in its report, in which it has been estimated that under favorable circumstances, Reliance stock can give returns of up to 70% from the current level. According to this report, this is the right time to invest in Reliance, especially when many of the company’s new schemes and capacity expansion projects are going to be fully implemented.
