ril: HSBC sees 10% upside in Reliance Industries; should you invest?

Shares of Reliance Industries advanced over 1 per cent in the morning trade on Friday after global financial firm HSBC maintained ‘Buy’ on the oil-to-telecom behemoth with a target price of Rs 1,700, citing inexpensive valuation.

The scrip was trading 1.32 per cent higher at Rs 1,557.60. The target price indicated nearly 10 per cent upside in RIL shares from current levels.

“RIL’s consumer businesses driving the upside. Jio and retail to continue to drive upside,” HSBC said.

Billionaire Mukesh Ambani‘s Reliance Jio on Tuesday said it will increase mobile phone call and data charges in the next few weeks in compliance with rules, as it followed similar announcements by Bharti Airtel and Vodafone Idea on tariff hike.

Domestic analysts are also positive on RIL. Astha Jain, Senior Research Analyst, Hem Securities said they like RIL’s telecom arm Reliance Jio in the telecom space as they expect the company to add more users going forward.

“We are bullish on RIL with a price target of Rs 1,600 in the short term and 1,800 in the long term.”

The market capitalisaton of the company is fast nearing the Rs 10 lakh crore mark helped by the continuous rise in its share price. On a year-to-date basis, the scrip has already rallied nearly 40 per cent till November 21, while the Sensex gained around 12 per cent during the same period.