Reliance Shares Upbeat After Q4: What Brokerages Are Saying

Reliance’s share price extended gains to the third straight session on Tuesday as the company reported its numbers for the quarter ended March.

What Happened: The conglomerate reported a year-on-year (YoY) decrease of 1.8% in its net profit for the March quarter, amounting to ₹18,951 crore compared to ₹19,299 crore in the same quarter last year.

The Mukesh Ambani-led conglomerate, recorded revenue from operations of ₹2.41 lakh crore for the quarter, up from ₹2.16 lakh crore in the March quarter of FY23. The EBITDA for the quarter stood at ₹47,150 crore, marking a 14.3% YoY increase.

Analyst Reactions: Most analysts remain positive on the stock’s prospects going forward. UBS maintained its “buy” rating for the stock with a target price of ₹3,420. The brokerage said that the earnings growth was on expected lines. It expects potential debt reduction over the next few quarters.

Jefferies also maintained its “buy” rating for the stock raising the target price to ₹3,380 from ₹3,140. The research firm said that the company’s Q4 numbers were in line and the balance sheet has seen improvements.

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Morgan Stanley maintained its “overweight” rating for the stock with a price target of ₹3,046. The brokerage said that Q4 was a good quarter with energy EBITDA standing out.

Bernstein maintained its “outperform” rating for the stock with a target price of ₹3,160. The brokerage said that the Q4 beat was driven by the Exploration & Production (E&P) Business and Oil to chemicals business. The analysts also highlighted that the company’s net debt declined by 8% YoY.

CLSA, on the other hand, downgraded the stock’s rating to “outperform” from “buy” but raised the target price to ₹3,300 from ₹3,060. The global brokerage firm said that the company’s Q4 numbers were mostly in line. The analysts added that while Jio’s numbers impressed Retail numbers were disappointing.

Kotak Securities also maintained its “add” rating for the stock hiking the target price to ₹3,200 from ₹2,900. The brokerage said that the company’s Q4 numbers were in line. The brokerage added that they think that the E&P business has peaked.

Price Action: Reliance’s share price was up 0.63% to trade at ₹2,978.45 as the markets opened on Tuesday.

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