Reliance Industries: This expert believes Mukesh Ambani-led firm to touch Rs 1700-level
RIL which is the largest company in terms of market share, has already driven Ambani’s wealth in just 4 months.
The Mukesh Ambani led Reliance Industries have become a hot stock since the time it announced its Q4FY19 result. In fact, RIL which is the largest company in terms of market share has already driven Ambani’s wealth in just 4 months. The start of May month was positive, as RIL share price finished at Rs 1,405.10 per piece up by Rs 13.30 or 0.96% on Sensex. But the company also touched an intraday high and low of Rs 1,413.75 and Rs 1,382 per piece respectively. Now a new rally call has been made, and this time RIL is seen to jump near Rs 1,700-levels. If this target price is in offing, then RIL will rise by nearly 21% in the near term. This is a definite boost to Ambani’s net worth as well.
Talking about RIL, Manish Yadav, Head of Research, Capital Aim said, "The surge seen in the price of Reliance Industries stock after Q4 results can be attributed to its increased focus on retail business. Addition of stores will enhance brand visibility and can dramatically improve the volume of business in the short term."
Going forward, Yadav says, "We expect Reliance to continue its upward move and lead the market, provided that the general election results do not upset the current market expectations. Although we do not recommend a buy at 1400+ levels."
However, when is exactly the right time to buy RIL shares for gaining hefty is the real question.
Yadav highlights saying, "Investors can start accumulating it after correction at sub-1200 levels. On the upside, we expect that the stock will trade around 1700 levels in a year but if the market starts correcting due to turbulence in global markets it may correct sharply up to 1100 levels."
According to Bloomberg Billionaire Index, Ambani holds 11th rank in richest people list, with a net worth of $55.1 billion just couple of crores away from Sergey Brin whose wealth stands at $55.7 billion. So far in 2019, Ambani’s wealth has jumped by 10.8 billion.