RIL shares down 8% so far this month. Are concerns over windfall tax overdone?
Shares of Reliance Industries NSE -0.26 % (RIL NSE -0.26 %), India’s largest company by market capitalisation, are yet to recover from the tax shock that came in at the beginning of this month. The stock is down 8 per cent so far this month even as most brokerages are singing a different tune and amid reports that the Indian government is considering lowering the windfall tax as global oil prices decline.
Analysts at HDFC NSE 1.10 % Securities said the recent correction is overdone. The domestic brokerage has an ‘add’ rating on RIL with a target price of Rs 2,825 based on recovery in the O2C businesses, improvement in ARPU, subscriber addition, new revenue streams, and further value unlocking in the digital and retail businesses.
