Reliance Industries Ltd (RIL) share cost gained half a per cent at Rs 2,124 apiece on BSE, even though shares of Just Dial tumbled more than 5 per cent to Rs 1,016.86 apiece on Monday. Last week, Reliance Retail Ventures (RRVL) mentioned that it will obtain a majority stake of 66.95 per cent in Just Dial. JP Morgan Equity Research has provided a neutral rating to RIL, following the acquisition announcement. The brokerage firm sees just 6.5 per cent upside in the RIL stock by March 2022. It has pegged a target cost of Rs 2,250 per share
Reliance Retail has signed an agreement to obtain 40.95 per cent in Just Dial for a consideration of Rs 3,497 crore and will subsequently make an open provide to obtain more 2.17 crore equity shares of the search engine platform representing 26 per cent in accordance with the takeover regulations.”We would wait to see how the acquisition would expand JioMart’s footprint and if Just Dial Mart is ultimately integrated with the JioMart app, thereby placing in location the developing blocks of a ‘Super App’,” analysts at JP Morgan mentioned. It also believes that the acquisition of a number of digital properties strengthens RRVL’s on-line commerce/payment presence.
Related News
-
Reliance’s O2C, new power biz may possibly be valued more than $one hundred bn: Report
-
RIL, Info Edge, Bharti Airtel, Vodafone Idea, Mindtree, Tatva Chintan IPO, bank stocks in focus
-
India Pesticides, ONGC, JK Cement, Vodafone Idea, Bharti Airtel, NTPC, RIL stocks in focus
The essential downside dangers to its ‘neutral’ rating and cost target contain the influence of huge spending on new digital initiatives. While upside dangers contain a sharper-than-anticipated recovery in the core organization and bigger than anticipated telecom tariff hikes. Earlier last week, Just Dial share cost hit a new 52-week higher of Rs 1,138 apiece. Just Dial stock cost has soared 65 per cent, so far this year, as compared to a 13 per cent rise in the Nifty 50 index.
RIL share cost has risen 16 per cent from its 52-week low of Rs 1,830 apiece, touched in January this year. So far, almost 14 lakh shares have traded on BSE, even though a total of 21.29 lakh shares have exchanged hands on NSE. Analysts at the study firm, think larger oil costs, expectations of a refining margin recovery, and ramp-up of Jio Mart really should continue to assistance the stock. Incrementally, bigger telecom tariff hikes would be seen as a positive, it added.
Over the last 3 years, Mukesh Ambani’s Reliance Industries has made a number of acquisitions across digital properties like NetMeds, Urban Ladder, Zivame. Analysts think that the essential attraction for RRVL would be access to Just Dial’s database of merchant listings/retailers and the possible to scale up the JD app and JD Mart Platforms and add on to the Jio Mart app and expand the scope of services and offerings across B2B and B2C.