Reliance Outlook: Reliance’s shares fell about 2 percent today amid a slippage of more than one percent in the domestic benchmark indices Sensex and Nifty.
Reliance Outlook: Shares of Mukesh Ambani-owned Reliance were today profit-booking after impressive results in the December 2021 quarter. It had gained 1 per cent in early trade but then it was slippery. Its shares fell nearly 2 per cent today amid a slippage of more than one per cent in the domestic benchmark indices Sensex and Nifty. In the December 2021 quarter, Reliance achieved a net profit of 41.5 percent year-on-year, i.e. Rs 18549 crore, while the company’s total income grew by 52 percent. After the quarterly results, brokerage firms have mixed views on investing in Reliance.
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Motilal Oswal: Buy
Target Price: Rs 2,800 per share
Analysts at brokerage firm Motilal Oswal are bullish on Reliance due to its impressive results in the December quarter. The brokerage firm believes that due to the increase in tariff, the Average Revenue Per User (ARPU) of Reliance Jio may increase and it is expanding itself. According to Motalal Oswal, the company’s growth prospects are better due to the company’s rapid move in retail business and the introduction of digital ventures like Jiomart platform.
Yes Securities: Buy
Target Price: Rs 2,845 per share
According to brokerage firm Yes Securities, despite weak demand, Reliance’s business was excellent in October-December 2021. In the last quarter, the demand for petroleum was down by 3.8 per cent year-on-year, polymer demand by 4 per cent and polyester by 5 per cent. However, analysts at Yes Securities believe that the situation may improve after a pick-up in economic activity.
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Emkay Global: Hold
Target Price: Rs 2,730 per share
Analysts at Emkay Global believe that Reliance’s financial performance remained as per estimates. The brokerage firm has cut the company’s EPS (earnings per share) estimate for FY 2022 due to low subscribers and low margins in the petrochemical business of Reliance Jio. However, analysts believe that in the current circumstances, its shares should be held and wait for further bounce. According to the brokerage firm, there will be a re-rating once the situation is clear on New Energy.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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