Shares of Mukesh Ambani-led Reliance Industries (RIL) gained momentum in Friday trade 2353.90 vs previous day’s close 2345 but could not sustain the gains and turned into red soon.
the stock was trading 2,338.20 a piece, down 0.33 percent at the time of writing the report. The stock has gained 3.16 per cent in the last one month, while on a year-to-date basis RIL share fell 9.09 percent.
Shares hit 52-week high 2,855 and 52-week low on April 29, 2022 2,180 on March 20, 2023.
Ahead of Q4 results, the average target price of RIL shares was 2,891, according to Trendline data, which suggested a potential upside of 23 per cent from current levels.
The oil-to-telecom major will announce its March quarter (Q4FY23) earnings today after market hours where the group is expected to report a flat profit.
Muted growth in topline, bottomline
Reliance Industries’ topline and bottomline growth is expected to moderate in the fourth quarter, but analysts expect strong double-digit growth in operating profit.
Consolidated revenue for the quarter growing year-on-year (YoY) at just 1.2 percent 2.14 lakh crore, according to the average of estimates given by seven brokerages.
Brokerage Kotak Institutional Equities expects Reliance’s net profit to grow by 1.3 per cent year-on-year 16,455 crores. Revenue for the oil-to-telecom conglomerate could grow by up to 9.4 per cent 2,26,872 crores.
HDFC Securities is expected Reliance to report EBITDA of 378 billion (up 20.4 percent YoY and up 7.1 percent QoQ), supported by steady performance of the retail and telecom sectors.
O2C EBITDA/tonne of crude processed is estimated to grow by 4 percent QoQ, led by improvement in petroleum product cracks and improvement in Petchem margins QoQ. We expect EBITDA to grow by 14% year-on-year 42.1 billion from its retail segment. We have projected 5 million subscriber additions and ARPU 179 in Q4.
Nuwama looks at RIL’s gains 16,464 crore, up 1.6 percent YoY. It expects sales to fall 3.3 percent 2,00,454 crores.
Reliance Jio is expected to do well in the March quarter on the back of steady growth in subscriber base and rise in ARPU.
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