RIL Stocks: After the December quarter results, Reliance Industries (RIL) shares are seeing a huge decline. On Monday, 25 January, RIL’s share fell nearly 4 per cent to Rs 1953 in Monday’s trade. The stock had closed at Rs 2050 on Friday. Actually, Reliance Industries’ EBITDA has been weaker than expected. Apart from this, the business of Telecom Arm Jio (Jio) has also been sluggish with hope. Because of which investors are selling. After the quarterly results, brokerage houses are also making their opinion about RIL’s stock. Know whether to invest in RIL or wait for now.
EBITDA weaker than expected
Reliance Industries’ Qanso and standalone EBITDA declined by 5 per cent and 33 per cent year-on-year in the third quarter. According to Jio’s expectations, Jio has grown 45 per cent year-on-year. However, growth in the retail business has surprised everyone. While the revenue has weakened in the retail business.
Pressure on revenue
RIL’s revenue fell to 1.28 lakh crore in the third quarter of the current financial year, from 1.57 lakh crore a year ago. The revenue of refining and petrochemical business fell to Rs 83,838 crore. Jio’s revenue growth was also sluggish and it was 6% higher on a quarterly basis. Retail business has weakened 9%.
Jio subscriber growth slack
The subscriber growth of Reliance Jio has been slow. In the third quarter, the company added 52 lakh new subscribers and grew by just 1 per cent. At the same time, ARPU also grew at 4 percent which is weaker than expected. The ARPU of the company has been Rs 151. Next, Jio will be eyeing the new growth engine. Jio’s business has been sluggish during the third quarter.
What is the opinion of the expert?
Brokerage house Motilal Oswal has advised to buy the stock. The brokerage has set a target of Rs 2325 for the stock. On Friday, it can get 13 percent growth in terms of the closing price of 2050. At the same time from Monday 1953, it can grow at 19 percent.
Brokerage house Goldman Sachs has set a target of Rs 2390 while recommending the purchase in the stock. According to the brokerage, EBITDA growth could be 59% in FY 2022. At the same time, brokerage house Credit Suisse has reduced the target to Rs 1930 by giving neutral rearing in the stock. According to the brokerage, the December quarter has been weak for O2C and Jio. However, there has been growth in Jio Mart and fashion segment.
