Reliance Industries share price jumped 1% to Rs 2,380 on NSE today after Mukesh Ambani-led company’s net profit surged 19.1% to Rs 19,299 crore on-year in Q4FY23, beating analysts’ expectations.
RIL revenue for the January-March quarter rose 2.1% on-year, to Rs 2.16 lakh crore. RIL shares have risen over 6.5% in the past one month, but have fallen nearly 15% in the last one year.
According to stock market analysts, RIL share price has strong support placed at Rs 2,285 whereas it is facing resistance at Rs 2,420. After the robust quarterly numbers, Reliance share price may go up to Rs 2,750 apiece once it breaches its current resistance.
"We believe that the company is ticking the right boxes and is becoming a threat to established players in sectors wherein it has entered recently. The nimble footing and changing dynamics of the company’s overall business make it attractive as a long-term play," said Manish Chowdhury, Head of Research at Stoxbox.
“RIL 4Q net profit was 11% below GSe on higher-than-expected depreciation while interest expense was largely in line. Our updated scenario analysis implies a 12% downside in our bear case and 83% upside in the bull case," said Goldman Sachs analysts. The brokerage has reiterated its 'buy' call on RIL stock with a target price of Rs 2,890.
Analysts at domestic brokerage Motilal Oswal Financial Services Limited (MOFSL) have reiterated their 'buy' rating in Reliance shares with a target price of Rs 2,800 per share.
“We have rolled our valuations to FY25E. Using SOTP, we value the Refining and Petrochemical segments at 7.5x EV/EBITDA, arriving at a valuation of Rs 879/share for a standalone business. We ascribe an equity valuation of Rs 800/share to RJio and Rs 1,354/share to Reliance Retail,” said analysts at Motilal Oswal.
HDFC Securities has assigned an 'Add' tag to Reliance Industries stock with a target price of Rs 2,637 per share. The brokerage believes that RIL has the potential for further value unlocking in the digital and retail businesses.
“Our ADD rating on Reliance Industries (RIL) with a price target of INR 2,637/sh is premised on (1) recovery in the O2C businesses; (2) EBITDA growth in the digital business, driven by improvement in ARPU, subscriber addition, and new revenue streams; and (3) potential for further value unlocking in the digital and retail businesses,” said analysts at HDFC Securities.
Several other brokerage firms including B&K Securities, JM Financial Services and Antique Stock Broking have assigned a 'buy' rating to Reliance Industries stocks with a target price of up to Rs 2,900.
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