Reliance Industries Ltd's stock could climb to Rs 1,800 a share, an upside of about 55 percent from Friday’s close, according to Deven Choksey, managing director of DRChoksey Finserv. He sees gains from strong refining margins in the oil-to-chemicals (O2C) business and the value of Reliance’s stake in listed Jio Platforms, and said he may raise his target price.
Speaking to CNBC Awaaz, Choksey said his target price of around Rs 1,800 per share could be raised further. He said Reliance Industries benefited from strong diesel refining margins in the September quarter and could continue to enjoy this advantage in the December quarter.
Choksey’s Rs 1,800 per share target price implies upside of about 55 per cent from Friday’s closing price and over 38 per cent from today’s closing price.
Choksey said Reliance's shift in refining and export orientation towards African and European markets had become increasingly evident in the September quarter. He added that the company was purchasing Venezuelan crude at lower costs and exporting refined products to Western and African markets, benefiting from higher gross refining margins (GRMs).
Choksey expects this advantage to continue in the December quarter, supporting the performance of Reliance's O2C business. He said the September quarter had been expected to deliver particularly strong earnings growth from O2C, with the benefit reflected in the company's profit performance.