Reliance Industries share falls below Rs 2,000 post Q2 earnings: Time to buy, sell or hold the stock?

Reliance Industries Ltd (RIL) share was trading lower after the Mukesh Ambani-led conglomerate announced its Q2 earnings for the current fiscal. RIL stock fell up to 4.47% to Rs 1962  against previous close of Rs 2,054 on BSE.  The large cap share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.

The large cap share has gained 35.24% in one year and risen 30.14% since the beginning of this year. The share has lost 11.44% in a month.

Total 1.68 lakh shares changed hands amounting to turnover of Rs 33.47 crore. Market cap of the firm fell to Rs 13.36 lakh crore. At 9:34 am, the share was trading 3.79% or Rs 77.80 lower at Rs 1,975 on BSE.

On Friday, RIL reported a 15 per cent decline in net profit at Rs 9,567 crore in July-September quarter of fiscal 2020-21 against Rs 11,262 crore in the corresponding period of last year.

Reliance Industries Q2 results: Net profit falls 15% to Rs 9,567 crore

Profit fell on account of weak demand in refining and petrochemicals business. In the first quarter of FY21, RIL reported a 31 per cent rise in consolidated profit at Rs 13,233 crore.

Consolidated revenue from operations in Q2 fell to Rs 1,16,195 crore compared to Rs 1,53,384 crore in Q2FY20.

While EBITDA came in at Rs 18,945 crore, EBITDA margin stood at 17 per cent. Share of RIL closed at Rs 2,064.35, up 37.45 points, or 1.85 per cent on NSE on Friday ahead of  Q2 earnings.

After Q2 earnings, here's what brokerages said on the prospects of RIL stock.

Reliance Retail Q2 revenue rises 30% to Rs 36,566 cr on robust growth in grocery, digital space

Motilal Oswal: Buy

"We ascribe an equity valuation of Rs 900/share to RJio and  Rs 627/share to Reliance Retail, factoring in the recent stake sale. Our higher EV/EBITDA multiple of 31 times for retail and 18 times for digital services underscore new growth opportunities in the digital space, along with the rationalisation of tariffs in RJio. Reiterate Buy, with target price of Rs 2,240/share."

CITI : Neutral

Q2 earnings were broadly in-line with estimates and refining remains weak spot. It lowered  FY21-23e EBITDA by 3-10%. There was a healthy rebound in petrochemicals. Jio earnings were in line with expectations. It sees normalcy returning  to retail business. The brokerage gave a target price of Rs 2,210.