Mukesh Ambani stock trading at discount of 26% and below 200-WMA to keep on your radar

Since 2021, Reliance has underperformed the markets. An investor who had put money in Reliance shares in October 2021, would have zero percent capital appreciation on their shares, except the Jio demerger, dividends, and the 1:1 stock bonus.

Since March of 2020, reliance had never touched its 200-week moving average (WMA). Today it closed below the 200 WMA and hit a 52-week Low of Rs. 1,156, down 28.10 percent from its 52-week high of Rs. 1608

Brokerages of Reliance

Despite the Underperformance of the shares since 2021, Brokerages have remained bullish on the stock, Data from Trendlyne says that 38 analysts are covering the stock, and 33 have given or maintained a BUY rating, and only 3 have given a sell rating.

Company has an average target of Rs. 1516 from brokerages, which accounts for 29 percent upside from current levels of Rs. 1175.

Morgan Stanley had given a Target of Rs. 1,662, which translates to an upside of 41.56 percent from current levels. They believe that oil refining will be a big driver for generation in the Free Cash Flow (FCF), and improvement in the profitability of the company’s retail store footprint can be seen from the earlier reduction of 3.6 million square feet in the last two quarters.

Brokerage is also bullish on Reliance’s New Energy Business, they believe that the new segment is expected to contribute to the increase in profit within the oil-to-chemicals (O2C) vertical in FY 25 and FY26. 

Also read: Pharma stock jumps 3% after receiving CDSCO approval to import and sell cancer treatment drug

Financial Highlights

The company reported a 6.61 percent YoY increase in revenue from Rs. 225,086 Crore in Q3FY24 to Rs. 239,986 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 3.64 percent in revenue from Rs. 231,535 Crore in the previous quarter.

Their Net profit saw an increase of 11.65 percent YoY from Rs. 19,641 Crore to Rs. 21,930 Crore for the same period. On a QoQ basis, the company reported a decrease of 13.49 percent in Net profit from Rs 19,323 Crore in the previous quarter.

About the Company

Reliance Industries Limited (RIL) is India’s largest conglomerate, with diversified businesses spanning oil & gas, petrochemicals, retail, telecommunications, and digital services. Founded by Dhirubhai Ambani and currently led by Mukesh Ambani, Reliance has grown into a global powerhouse with a strong presence in energy, consumer goods, e-commerce, and technology. The company revolutionized India’s telecom sector with Jio, making affordable high-speed internet accessible nationwide.

Written By Abhishek Das

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