Shares of Reliance Industries Ltd (RIL) fell over 3% on the BSE in early deals on Monday on missing estimates in the June-quarter, even as its net profit jumped 46%. Its core oil-to-chemicals business rallied by Rs 17,955 crore on the back of strong refining margins on account of cheaper Russian crude intake and fuel exports.
India’s top valued company’s revenue from operations up 55% to 2.23 trillion 1.44 trillion. However, overall spending increased by 51% 1.98 trillion due to increase in raw material cost.
Mukesh Ambani-led RIL, which produces gas from an ultra deep water block in the country’s east coast, said it has also benefited from the revision in local gas prices and expects higher local prices from October.
Telecom arm Reliance Jio posted healthy ARPU-led EBITDA growth – 27% from the year-ago quarter and 4% on a sequential basis, while Reliance Retail EBITDA posted a year-on-year (YoY) of 98% due to improvement in operations. Took the jump ,
What do brokerages recommend Shares of RIL Post Q1 Results
“We expect RIL refining to remain bearish in the near term as GRM fell to USD5/bbl (June: USD30) amid bearish fears. The export duty levy will further reduce profits – about USD4 GRM effect. Upstream will roughly match retail EBITDA by FY24E, driven by higher gas prices and a faster-than-expected KG-D6 ramp-up. The new energy (recent upgrade) scheme towards Green H2 will boost valuation re-rating, apart from heavy synergies with the existing O2C business,” said brokerage and research firm Edelweiss with a 12-month target price of ‘Buy’ rating on the stock. Maintaining said. 3,205.
“While Q1 numbers were misses and Q2 GRMs are also down, we expect them to stabilize at more standard levels and the upcoming winter to provide support. The outlook for consumer businesses is stable, though we await an update on 5G. Buy maintain and any price correction . would be a good entry point with a target price of 2,750,” said another brokerage Emkay.
Another domestic brokerage company Motilal Oswal has also reiterated the buy tag. Shares of Reliance Industries with a target price of 2,785 as it underlines new growth opportunities and steady market share gains in the digital space.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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