Reliance Industries: CLSA ups target by 10%, retains outperform

Shares in Reliance Industries traded higher on Monday after global brokerage CLSA raised its target price on the stock to Rs 930, indicating an 11 per cent upside from current levels.

CLSA maintained its "outperform" rating on RIL, but raised its target price on the stock from Rs 850 by 10 per cent.

RIL shares traded 0.5 per cent higher at Rs 843.50 on the BSE at 12.55 p.m. but underperformed the broader markets, which traded with 1 per cent gains.

Exploration and production news flow will turn positive in 2013 after a drag for two years, CLSA said, adding that visibility on growth projects will rise this year. Last week, Oil Minister M Veerappa Moily allowed Reliance Industries to explore for oil and gas within the producing fields subject to certain conditions. RIL had proposed to drill an exploration well on the flagging D1&D3 gas fields in the KG-D6 block to study reservoir characteristic.

The ongoing share buyback will support RIL stock price, CLSA added.

By December 30, Reliance Industries had bought back shares worth over Rs. 3,800 crore from public shareholders since the launch of its share repurchase programme in February -- achieving 37 per cent of the target with less than a month left for its completion. RIL's buyback would end on January 19, 2013.