Reliance Industries shares fell more than 2% on Monday (July 24) to hit an intraday low of Rs 2,469.30 on NSE after the Mukesh Ambani-led conglomerate on Friday reported its Q1FY24 scorecard which showed its consolidated revenue and profit declined during the quarter because of the weak show of O2C business
RIL's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter stood at Rs 38,093 crore, compared to Rs 37,997 crore in the year-ago period. The company's overall growth was offset by O2C performance despite steady growth in retail and telecom arms
Despite Reliance's Q1FY24 Results which failed to impress investors, several brokerage firms maintained their earlier views on the stock. However, Reliance Industries shares may have limited upside potential post the recent run-up -- at least in the near term, as a few brokerages downgraded the stock to 'Hold' post June quarter results and demerger of Jio Financial Services (JFS)
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Domestic brokerage firm Motilal Oswal Financial Services has maintained a buy call on Reliance stock with a target price of Rs 2,935 per share. The brokerage expects that growth in telecom will continue to soften with a higher base and lower probability of tariff hikes in the near term as well as intensifying 5G spending
Emkay Global has downgraded RIL stock with a target price of Rs 2,660."Due to the recent stock run-up (with the JFS demerger) and rangebound business outlook, we downgrade RIL to Hold. We are constructive on earnings growth; any positive trigger with respect to further vertical monetisation, new energy, and Jio tariff hikes could rerate the stock," it said
JP Morgan believes that Reliance stock offers multiple potential catalysts over the next 18 months. It raised the FY24-25 EBITDA estimate by 1.5-4.1% but cut EPS by 5.4-2.9% for the period due to higher applicable tax rate. The brokerage has an “overweight” rating on the stock and has raised the target price to Rs 3,040 apiece
International brokerage and research firm Macquarie has an “underperform” rating on RIL stock with a target price of Rs 2,100 a share. Meanwhile, Citi has suggested a target of Rs 2,750 on the stock, and Jefferies finds the stock worth Rs 2,935 per share
Nuvama Wealth Management maintained a buy call on the stock but cut the target price to Rs 3,088 from Rs 3,205 earlier. Nuvama said RIL’s new energy shall unleash the next leg of growth opportunity. Kotak Institutional Equities has downgraded the stock to an 'add' from a 'buy and cut the target price to Rs 2,700 from Rs 2,800, discounting the recent rally in the stock and observing a lack of near-term catalysts
Nomura India said the forthcoming annual general meeting (AGM) of Reliance Industries is likely to offer next trigger for the stock, as the oil-to-telecom major may provide a roadmap for value unlocking in the retail segment and further updates on new energy business and Jio Financial Services (JFS). For now, the brokerage has maintained its 'Buy' rating on the stock with a target of Rs 2,925
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