Reliance Industries hits six-month high; surges over 10% in one week

Shares of Reliance Industries (RIL) has moved higher by 5% to Rs 974, extending its in past four day’s rally on the NSE, after the company said Jio and retail will place Reliance in a select group of most valuable companies in the world.

Currently, the stock trading at its highest level since December 2014 and rallied 11% in past one-week from Rs 877 on June 11, 2015. The CNX Nifty gained 2.3% during the same period.

At RIL’s 41st annual general meeting last Friday, June 12, Mukesh Ambani said retail and telecom will be the next big focus for the company.

The Chairman at multiple points highlighted that with the company coming to a close to its Rs 2,000 billion investment program (around $30 billion), various projects would be commissioned/rolled out across the next 12-18 months with the full benefits of the investment cycle to be seen from FY17 onwards.

Meanwhile, analyst at JP Morgan remains positive on RIL’s strategy of organic growth in its core businesses, and continues to see premium earnings delivery with the commissioning of new capacities.

However, we see continuing risks to the overall refining/petchems space, with capacity overhangs and volatile commodity prices weighing on profitability. Furthermore, uncertainty over telecom spends is likely to continue to weigh on the stock, analyst said in a report dated June 12, 2015.

Reliance Industries Limited (RIL)