Foreign portfolio investors (FPIs), promoters and individual investors raised their stakes in the energy-to-telecom behemoth Reliance Industries (RIL) during the quarter gone by.
Latest shareholding data showed that FPIs held 25.20 per cent stake in the company as of September 30 against 24.72 per cent in the preceding quarter ended June 30.
Promoters also upped their stake to 50.49 per cent from 50.37 per cent.
On the other hand, mutual funds cut their stake to 5.12 per cent from 5.44 per cent. The country’s biggest institutional investor Life Insurance Corporation of India also reduced its stake to 5.70 per cent from 5.94 per cent.
Holdings of individual investors including high net worth investors (HNIs) increased to 8.81 per cent from 8.54 per cent.
RIL has been one of the best performing stocks in recent times as it has jumped 93 per cent since the beginning of the ongoing financial year, buoyed by a series of marquee deals for its Jio Platforms and Reliance Retail. However, the benchmark BSE Sensex has gained 38 per cent during the same period.
Brokerages JM Financial is bullish on RIL with a price target of Rs 2,313-2,358.
“RIL is entering a strong free cash flow (FCF) generation phase with major capex completed and expectation of strong 17-18 per cent EPS CAGR over the next 3-5 years, led by digital and retail businesses. We expect RIL’s FCF yield to improve from 2 per cent in FY20 to 7 per cent in FY25,” JM Financial said.
Morgan Stanley earlier this month maintained ‘Overweight’ rating on the company with a price target of Rs 2,247.
Commenting on the upcoming quarterly results, it said Q2FY21 earnings should show sequential improvement with petrochemicals in the driver’s seat. Beyond the near term, we expect earnings pivoting back to the growth path in early 2021.
Credit: Stocks-Markets-Economic Times