homebusiness NewsExpect RIL to test its previous highs, go to Rs 2,500 zone soon, says Prakash Diwan
Expect RIL to test its previous highs, go to Rs 2,500 zone soon, says Prakash Diwan
Reliance Industries Ltd’s (RIL) annual report was released on Wednesday. The report shows RIL is well poised with liquidity to drive its digital, retail and O2C businesses. The plan to reorganise its O2C business by end of 2021 and induct investors is also on track. But what stands out against the pandemic backdrop are the significant achievements in developing COVID test kits and drugs, which can also be a new avenue for growth. Market expert Prakash Diwan shared his views.
Reliance Industries Ltd’s (RIL) annual report was released on Wednesday. The report shows RIL is well poised with liquidity to drive its digital, retail and O2C businesses. The plan to reorganise its O2C business by end of 2021 and induct investors is also on track. But what stands out against the pandemic backdrop are the significant achievements in developing COVID test kits and drugs, which can also be a new avenue for growth. Market expert Prakash Diwan shared his views.
“The very clear takeaway from the annual report is the clarity of the timeline of the O2C carve out – that’s a phenomenal change, and it was always on the cards. The timeline indicates that it is going to be within the next 6 months,” he said.
“At Rs 1,800-1,900, we were missing out on triggers for Reliance to start participating in the upmove. We have seen the participation and this validates that. So, the annual report very clearly is a reaffirmation of the debt reduction, the O2C carve-out, the kind of value unlocking that could happen,” he added.
“You will see the stock test its previous highs and go to the Rs 2,500 zone very soon,” Diwan reiterated.
According to Diwan, the diagnostic thing could probably make a big difference in terms of getting traction to some of the other businesses. “I think it may not be a standalone vertical, but it will definitely be a very strong secondary support to the existing verticals,” Diwan mentioned.
For the full interview, watch the accompanying video.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
(Edited by : Dipika)
First Published: Jun 3, 2021 9:46 AM IST
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