Religare's Mishra expects consistent improvement in Reliance's O2C segment; sees 46% upside

His forecast comes as the RIL stock surged 11.6 percent on Monday, its biggest single-day gain in more than six years, amid improving performance in the company’s oil-to-chemicals (O2C) business. Speaking to CNBC-Awaaz, Mishra said a target price of Rs 1,700 for Reliance Industries is achievable over the next 24-36 months. Mishra said the conglomerate's diversified businesses provide support to its overall performance, with different segments contributing to growth at different times.

He highlighted a 44 percent increase in revenue from the O2C segment and a 68 percent rise in EBITDA, pointing to a significant improvement in the oil and chemicals business over the past two quarters. However, Mishra said the O2C segment’s growth would depend on global supply conditions and geopolitical developments. RIL's O2C business delivered its strongest-ever quarterly performance, with revenue rising 44.2 percent year-on-year to Rs 2.32 lakh crore and EBITDA surging 67.9 percent to Rs 25,203 crore.

Transportation fuel cracks, a measure of refining margins, rose 3 to 3.7 times from a year earlier, reaching historic highs during the quarter. The company's consolidated revenue surged 28 percent year-on-year to an all-time high of Rs 3.62 lakh crore, while EBITDA increased 24 percent to a record Rs 62,409 crore. Net profit jumped 34 percent to Rs 29,550 crore, also a quarterly record. RIL stock settled at Rs 1,300 per share, up 11.6 percent.

The stock emerged as the top gainer and the biggest positive contributor to the Nifty 50 index, while also becoming the most actively traded stock on both the NSE and BSE.