Gladiator Stocks - Reliance Industries - ICICI Direct

Technical View

Reliance Industries' share price is resolving out of eight month's long higher base formation signalling end of a corrective phase and resumption of new uptrend, thus offering a fresh entry opportunity

Key point to highlight is that, over the past eight months the stock retraced just 38% of its CY20 rally (Rs. 867-2369) highlighting a robust price structure and resilience

Fundamental View

- Reliance Industries Ltd (RIL) is India's one of the largest conglomerate with its foray in oil refining & marketing, oil & gas exploration, petrochemicals, organised retail, media and digital services (Jio) making it a well-diversified business entity

- Reliance retail has become the largest organised retailer in India and has clocked 50% CAGR during FY16-21 (core Retail: 35% CAGR) to reach Rs. 1.6 trillion in revenues and 58% CAGR in EBITDA to reach Rs. 8464 crore. It currently operates more than 12700 stores in over 7000 cities/towns and covering a retail space of 34 million square feet. Reliance Retail's widespread physical store network would further enhance its omni channel capabilities and position it as a frontrunner to garner consistent business growth by capturing a larger pie of the Indian retail sector opportunity

- Reliance Jio, having commenced operation in Sep, 2016, has come a long way since then with market leadership in India with 415mn subs commanding 35.5% subscriber market share as of Feb, 2021, while revenue market share stood at 40%+ as on 3QFY21. The company operates wireless services, fibre broadband (JioFiber), enterprise and is building a digital ecosystem through its suite of offerings across digital media, ed-tech, eHealth and strategic investments into other emerging technologies. We see the favourable industry structure of three players (with two being strong), a good enough kicker for eventual hike in tariff) as well as superior digital play in medium to long term

For details, click on the link below: Link to the report

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.2168.25 as compared to the previous close of Rs. 2160.45. The total number of shares traded during the day was 916472 in over 56064 trades.

The stock hit an intraday high of Rs. 2201.7 and intraday low of 2147.35. The net turnover during the day was Rs. 1994673204.

Source : Equity Bulls

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