'Reliance shares still undervalued, strong retail numbers could be next big trigger,' says Gurmeet Chadha

What happened

Gurmeet Chadha said Reliance Industries shares had traded below the estimated combined value of its businesses and that stronger retail performance could be a major stock trigger. He cited oil-to-chemicals performance, steady Jio numbers, the Jio Platforms listing and stronger-than-expected quarterly earnings amid a recent rally.

Confirmed

Global impact / market context

If retail performance improves, investors may value that business more highly, raising their estimate of Reliance’s total worth and potentially supporting the shares. Better retail sales could also add revenue, while stronger results may encourage further investment; however, Chadha’s retail trigger is a possibility, not a confirmed outcome.

Analyst inference

Reliance rose 11.6 percent to Rs 1,300 on Monday, and Chadha linked investor support to oil-to-chemicals strength, steady Jio numbers and the Jio Platforms listing. He also cited stronger-than-expected quarterly earnings, which can support investor expectations of business performance and future cash generation.

Analyst inference

What to watch

1. Review the next retail results for evidence of stronger performance; higher sales could add revenue, while weak figures would leave Chadha’s suggested stock trigger unsupported. Analyst inference
2. Watch for updates on the Jio Platforms listing, which Chadha identifies as supporting investor sentiment; a listing could provide a clearer basis for valuing that business. Analyst inference
3. Compare upcoming oil-to-chemicals results and Jio numbers with the reported strength and steadiness; deterioration could weaken two supports Chadha cited for investor confidence. Analyst inference

Evidence

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