Reliance Industries (RIL) rose 4.15% to Rs 1290 after a foreign brokerage reportedly maintained overweight rating on the stock with a target at Rs 1,469 per share.
The brokerage reportedly believes that investor's confidence is increasing in the earnings delivery while lower taxes and cheaper gas feed costs should de-risk the outlook.
The target price of Rs 1469 is 13.88% premium to the prevailing market price of Rs 1290.
On 13 September 2019, Reliance Services and Holdings, a part of promoter group, acquired 17.18 crore equity shares, or 2.71% stake, in RIL. The aggregate shareholding of the promoter and promoter group now stands at 309.80 crore shares, or 48.87% equity.
In its 42nd annual general meeting (AGM) on 12 August 2019, RIL chairman and managing director Mukesh Ambani said RIL ended last year with net debt of Rs 154,478 crore. The company has clear roadmap to becoming a zero net debt company within the next 18 months that is by 31 March 2021.
The Mukesh Ambani-owned telco Reliance Jio launched its fiber-to-the-home service Jio Fiber across the country on 5 September 2019. Jio Fibre plan starts with 100 Mbps speed and goes all the way up to 1 Gbps or 1000 Mbps. Jio Fiber plans are priced between Rs 700 to Rs 10,000 per month. Reliance Jio has invested nearly Rs 3.5 lakh crore towards creating a digital infrastructure across India, with the largest optical fiber footprint. Jios customer base has crossed 340 million users and it is signing up more than 10 million new customers each month.
Meanwhile, the S&P BSE Sensex was down 60 points or 0.15% to 39030.13.
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The market surged in the past two sessions after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, RIL paid corporate tax of 25.76%.
On the BSE, 7.88 lakh shares were traded in the RIL counter so far compared with average daily volumes of 4.54 lakh shares in the past two weeks. The stock hit a high of Rs 1298.55 and a low of Rs 1242.05 so far during the day.
The stock hit a 52-week high of Rs 1417 on 03 May 2019. The stock hit a 52-week low of Rs 1017 on 25 Oct 2018.
The stock is currently trading 8.96% below its 52-week high and 26.84% above its 52-week low.
On a consolidated basis, the conglomerate's net profit rose 6.8% to Rs 10104 crore on a 21.9% increase in the net sales to Rs 156976 crore in Q1 June 2019 over Q1 June 2018.
Reliance Industries is an Indian multinational conglomerate company. The company owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
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