RIL stock on a smooth runway to new high, but headwinds can emerge

Mumbai: Analysts see more steam in Reliance Industries (RIL) shares after the stock made a dream run to record high at a time when Covid-19 pandemic has cast its shadow on the near-term outlook of the refining and petrochemicals business.

Mukesh Ambani-led RIL is currently India’s most-valued company, with a market capitalisation of more than Rs 10 lakh crore. Shares of the index heavyweight have risen 262 per cent over last five years, 141 per cent in last three and 22 per cent in last one year, smartly outperforming the frontline indices.

That said, some analysts still see a few hurdles on an otherwise clear runaway, including possible regulatory risks to Facebook’s investment in Jio Platforms and headwinds to the conglomerate’s core business.