Shares of Reliance Industries Ltd (RIL) tumbled 4% in today’s early trade amid the massive market crash. RIL shares fell 4.01% to Rs 1285.35 from the previous close of Rs 1339.10 on BSE. The market capitalization of the firm fell to Rs 17.48 lakh crore. A total of 7.25 lakh shares of the firm changed hands, achieving the second largest turnover of 94.46 billion rupees on BSE. The stock hit a record high of Rs 1608.95 on July 8, 2024 and fell to a 52-week low of Rs 1149.08 on November 10, 2023.

RIL stock has lost 0.30% this year and is up 11.34% in the last one year.

From a technical perspective, the relative strength index (RSI) of RIL stock stands at 36.4, signaling that the stock is trading in neither oversold nor overbought zone. The stock’s beta is 1.2, indicating high volatility within a year. RIL shares are below the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

JM Financial maintained its buy rating on the large-cap stock.

“RIL’s stock price has underperformed the broader markets, returning just 5% in CY24YTD against a return of 15% for the Nifty-50. This underperformance has been reversed, supported by faster-than-expected telecom tariff hikes and recovery by telcos.” We believe it can turn around. Positive announcements in retail business and new energy business will continue to remain strong across segments and we expect 15% PAT CAGR in FY24-27, JM Financial said.

The brokerage has listed three risks in its projection for RIL stock.

1) Continued high capital expenditures lead to increased net debt and limited visibility of earnings from new projects

2) Weak subscriber additions limited ARPU growth

3) Sales margins are thin due to macro concerns.

HDFC Securities said: “Given major technological advancements and ambitious growth targets, Reliance’s Retail, Telecom and new energy segments are poised to be growth drivers in the next two to three years. The company aims to double its EBITDA in the coming period In five years, the company will report a consolidated revenue/EBITDA/PAT CAGR of around 19% with 5G opportunities, increased investments in AI/data centres, further expansion in Retail and launch of PV/battery plants in New Energy 14%/16% by FY 24-26E.”