This foreign brokerage has ‘sell’ rating on Reliance Industries. Here’s its take

Global financial service firm UBS initiated a coverage on oil-to-telecom behemoth Reliance Industries (RIL) with ‘Sell’ rating and set a target price at Rs 870, indicating a fall of 8 per cent against the previous close of Rs 947.60.

The scrip was trading 1.02 per cent down at Rs 937.95 at around 10 am (IST) on Tuesday. It opened at Rs 949 and touched a high and low of Rs 949 and Rs 939, respectively, in trade so far. Benchmark BSE Sensex was up 63 points, or 0.18 per cent, at 34,906 at around the same time.

Reliance Industries has spent a hefty $60 billion over projects, expanding from petrochemicals to telecom business and from investments in gasification to pet coke. But UBS believes that the investments are unlikely to begin generating cash anytime soon.


This is the sixth ‘Sell’ rating for RIL compared with 29 ‘Buy’ ratings.

On the BSE, 68,000 lakh shares were traded in the counter so far, compared with average daily volumes of 5.44 lakh in the past two weeks.

The stock had hit a 52-week high of Rs 959 on November 24, 2017, and 52-week low of Rs 507.3 on January 23 last year.