Stock Tips: The shares of Mukesh Ambani-owned Reliance Industries Limited (RIL) are being sold today. The company had announced the financial results for the April-June 2021 quarter last week, about which the reaction of investors is visible in the market today. Reliance had a net profit of Rs 12,273 crore in the first quarter of the current financial year, which was 7.25 percent lower on a year-on-year basis. However, the company’s revenue increased by 58.2 percent and this time in the April-June 2021 quarter, the company got revenue of Rs 1.44 lakh crore as compared to Rs 91238 crore in the same quarter last year. The shares of this company, which is trading from oil to telecom, are trading at Rs 2087.40, down 0.87 per cent on NSE on Monday. So far this year its price has increased by 5 percent and last year since March 2020 till now, there has been a jump of 97 percent.
See live price here
Reliance Industries’ EBITDA grew 27.6 per cent year-on-year to Rs 27,550 crore in the April-June quarter. Recently, the company gave maximum focus on retail and telecom business, it showed tremendous performance in June 2021 quarter. Jio Platforms net profit grew 45 per cent year-on-year to Rs 3651 crore and Reliance Retail’s profit jumped 123 per cent to Rs 962 crore. It is now gaining dominance in the retail business and has 12,803 operational physical stores across the country.
Glenmark Life Sciences IPO will open tomorrow, at a premium of 20% in gray market, here is the opinion of experts for subscription
Motilal Oswal: Bye, target price – Rs 2485 (18%)
Analysts of Motilal Oswal are bullish on Reliance and according to them, it may gain 18 per cent. According to analysts at Motilal Oswal, the company’s O2C (oil to chemical) business is at 7.5x FY23E EV/EBITDA and based on this, the standalone business valuation works out to Rs 776 per share, while exploration and production are sold by the brokerage firm at Rs 68 per share. Share is assigned. Motilal Oswal has an equity valuation of Reliance Jio at 20x FY23E EV/EBITDA at Rs 875 per share and Reliance Retail at 34x FY23E EV/EBITDA at Rs 771 per share. This calculation includes the recent stake sale by Reliance. The brokerage firm estimates that the increase in tariff along with the digital and fiber landscape will increase the profits of Reliance through Jio. Apart from this, preparations to bring the Jiomart platform aggressively will lead to the growth of the retail unit.
Kotak Securities: Add, Fair Value – Rs 2260 (7%)
According to brokerage firm Kotak Securities, the financial results of Reliance came as per the estimates. However, Jio’s results were better than expected. Despite restrictions due to Corona, Jio added 143 million net subscribers to its network and its average revenue per user (ARPU) remained almost constant. Consolidated EPS has increased by 3-4 per cent for the financial year 2022-24 due to better performance of the company in the April-June quarter, increase in income from other sources and reduction in financial costs. Analysts at Kotak Securities have revised the fair value from Rs 2200 to Rs 2260, considering strong earnings growth prospects.
No need to worry about getting a passport, now you can also apply at the nearest post office
ICICI Securities: Hold, Target Price- Rs 2107
EPS (earnings per share) may decline in FY22 due to weak gross refining margins (GRM), fall in petrochemical margins and delay in recovery in retail business due to fears of a third wave. According to ICICI Securities, the stock will continue to underperform unless there is a hike in tariffs and retail growth reaches pre-corona levels or a recovery in GRMs. According to the brokerage firm, Reliance’s petrochemical margins are already well below record highs and the addition of large capacity in products could lead to further correction. Reliance shares have underperformed this year on Nifty50.
(Article: Kshitij Bhargava)
(Disclaimer: 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.)