Shares of Reliance Industries Ltd (RIL) rebounded on Thursday, rising as much as 3% after witnessing a steady decline over the past month.
The recovery came as several brokerage firms suggested that the recent correction in the stock appeared overdone and that current valuations may already reflect most near-term risks.
RIL Share Price Today
Reliance Industries shares traded higher on Thursday morning. As of 11:19 AM on March 5, the stock was trading at Rs 1,384.40, gaining Rs 39.40 or 2.93% for the day.
The stock opened the session at Rs 1,353.10 and moved upward during the morning trade, touching an intraday high of Rs 1,387.30, while the day’s low remained at Rs 1,353.10. The rebound comes after a recent phase of selling pressure in the stock.
On a broader timeframe, Reliance Industries shares have recorded a 52-week high of Rs 1,611.80 and a 52-week low of Rs 1,114.85.
Reliance Industries Shares Jump After Month-Long Slide; Know Why?
Analysts believe the company could benefit from stronger crude oil prices and improving refining margins, particularly as geopolitical tensions in the Middle East continue to push energy markets higher.
Market experts noted that firmer crude prices often translate into better profitability for refining and petrochemical businesses. For Reliance, this could particularly support its oil-to-chemicals (O2C) division, which remains a major contributor to earnings.
Can Higher Crude Prices Boost Refining Margins?
Rising fuel prices, especially diesel, could also support refining spreads, giving the company additional margin strength if global energy markets remain tight.
Over the past month, Reliance Industries’ stock had declined roughly 8%, reflecting investor concerns around increased competition in the retail segment and the rapid expansion of quick commerce platforms.
However, analysts argue that the extent of the correction may have been disproportionate compared to the actual impact on the company’s long-term earnings outlook. Several brokerages believe that current share prices already factor in these concerns, while underestimating potential growth drivers in other business segments.
Should You Buy Reliance Stock? Check JM Financial’s Recommendation
Brokerage firm JM Financial highlighted that the stock is currently trading close to its bear-case valuation estimate. In a research note, the firm stated that at current market price levels, Reliance shares are hovering near their downside valuation scenario, around Rs 1,275 per share.
Despite the recent weakness, the brokerage maintained its “buy” rating on the stock and reiterated a target price of Rs 1,730 per share.
According to analysts, a significant part of the recent pressure on the stock appears to be linked to foreign institutional investor (FII) selling rather than a deterioration in the company’s core fundamentals. Market observers pointed out that the company’s operational performance across key verticals including energy, telecom and digital services – remains broadly stable.
From an operational standpoint, Reliance may also benefit from the structure of its feedstock mix in the petrochemical business. Analysts explained that the company’s feedstock basket includes around 25% ethane, roughly 50% off-gases and only about 25% crude-linked naphtha.
Because a smaller portion of the input costs is directly tied to crude oil prices, the company could potentially see improved margins when product prices rise faster than feedstock costs.
Beyond the energy business, analysts remain optimistic about the company’s digital segment, driven by Jio Platforms. Brokerage estimates that the digital arm could deliver EBITDA growth of around 15-16% over the next two to three years as subscriber monetisation improves and digital services expand further. This potential earnings growth, analysts argue, is not yet fully reflected in the current share price.
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