Buy Reliance Industries, target price Rs 1,570: Emkay Global

Emkay Global Financial Services has a buy call on Reliance Industries with a target price of Rs 1,570. The current market price of Reliance Industries is Rs 1201.8. Reliance Industries, incorporated in 1973, is a Large Cap company with a market cap of Rs 1689787.40 crore, operating in a Diversified sector.

Reliance's key products/revenue segments include Petrochemicals, Other Services, Oil & Gas, Others and Income from Retailing for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 244200 crore, up 3.29% from last quarter Total Income of Rs 236411 crore and up 6.66% from last year same quarter Total Income of Rs 228955 crore. The company has reported net profit after tax of Rs 21804 crore in the latest quarter.

The company?s top management includes Mr.Mukesh D Ambani, Mr.Haigreve Khaitan, Mr.K V Chowdary, Mrs.Arundhati Bhattacharya, Dr.Shumeet Banerji, Mr.Raminder Singh Gujral, Mr.K V Kamath, Mr.Yasir Othman H Al Rumayyan, Mr.Akash M Ambani, Mr.Anant M Ambani, Mr.P M S Prasad, Mr.Hital R Meswani, Mr.Nikhil R Meswani, Ms.Isha M Ambani. Company has S R B C & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 1,353 crore shares outstanding.

Investment Rationale
Reliance has corrected 37% since Jul-24, on the back of a weak FY25. Emkay Global sees a window of outperformance, driven by multiple positives. Reliance is underowned. The brokerage estimates that the MFs/FPIs have shrunk weightage from 4.4%/8% in Mar-23 to 3.4%/4.5% in Dec-24 ? severely UW vs Nifty/BSE500 weights of 8.2%/4.9%. Any positive momentum in fundamentals could trigger large flows into the stock.

Promoter/FII Holdings
Promoters held 50.13 per cent stake in the company as of 31-Dec-2024, while FIIs owned 19.16 per cent, DIIs 18.92 per cent.