Reliance Share Price Ends Lower After Q4 Result: Should You Buy, Sell, Or Hold? Leading Brokerages Say This

Date:

Reliance percentage rate ended in the pink on Tuesday, April 23, a day after the agency stated its March sector scorecard. Reliance proportion fee ended 1.36 in line with cent decrease at ₹2,919.50 apiece on NSE at the same time as the benchmark Nifty 50 ended with a advantage of zero.14 according to cent.

Reliance share price ends lower after Q4 result Should you buy, sell, or hold Leading brokerages say this
Reliance share price ends lower after Q4 result Should you buy, sell, or hold Leading brokerages say this

Reliance proportion charge has risen approximately 37 consistent with cent over the past 12 months, outperforming the fairness benchmark Nifty 50 which has gained nearly 27 in step with cent within the identical period.
Reliance share price hit its 52-week high of ₹three,024.90 on March four this year even as its 52-week low degree is ₹2,220.30 which it hit on October 26 final yr. On a monthly scale, Reliance proportion fee has been flat in April so far following five consecutive months of gains.

Reliance Q4 result

Gross revenue at Reliance grew year over year (YoY) by 10.8% to ₹2,64,834 crore. However, compared to ₹21,327 crore in the same quarter previous year, profit after tax (PAT) stayed essentially same at ₹21,243 crore.
According to the corporation, all of its companies contributed significantly to its EBITDA, which rose by 14.3% YoY to ₹47,150 crore.

Should you buy, sell or hold?

In the wake of Reliance’s March quarter earnings, the majority of brokerage firms continued to hold optimistic opinions on the company. Given that they think the company has completed its cycle of capital expenditures, a few of them have increased their target prices for the shares.

Motilal Oswal Financial Services

noting the Q4FY24 EBITDA and PAT of RIL were above estimates primarily owing to the expansion in the O2C (oil-to-chemicals) sector, which was partially offset by lower-than-estimated performance in the retail segment, Motilal maintained its buy rating on RIL with a target price of ₹3,245.
The trading firm has increased its FY25E and FY26E capital expenditure projections to ₹1.2 lakh crore apiece.
The refining and petrochemical segment is valued at eight times FY26E EV/EBITDA using our SoTP technique, resulting in a per share valuation of ₹1,029 for the standalone business. According to Motilal Oswal, “We assign an equity valuation of ₹810 per share to RJio, ₹1,593 per share to Reliance Retail, and ₹37 per share to the new energy business.”

Nuvama Wealth Management

The brokerage company maintained a ‘buy’ recommendation on the stock and increased its target price by 10% to ₹3,500.
Given its robust expansion and client base, it anticipates that RIL’s consumer segment (digital and retail) would contribute over 50% to EBITDA starting in FY25.
“With their enormous potential, we are now giving Jio and Reliance Retail a rich valuation, but we are still optimistic about the core O2C business (both refining and chemicals).” consistent with Nuvama, “We suppose that a paradigm shift in local refining dynamics from West to East could result in an boom in refining margins in Asia, which is favorable for a complex refiner like Reliance.”

” RIL has nearly finished its capital expenditure cycle, making an investment in international projects like telecoms, off-gasoline crackers, and petcoke gasification, which might be anticipated to propel boom in the imminent months. RIL has begun commissioning the other KG-D6 projects, which will increase gas output overall. In addition to supporting its traditional business, RIL’s entry into the new energy sector will spur the company’s next phase of expansion, according to the brokerage firm.

Kotak Institutional Equities

With the new fair value of ₹3,200—a 10% increase from ₹2,900—Kotak kept its ‘add’ call on the RIL.
We reduce the FY2025-26E EBITDA by approximately 1% to 2% due to a decrease in RJio subscriber additions following Vodafone Idea’s funding. However, due to the roll-forward to March 2026E (from December 2025E), stronger long-term ARPU forecasts in RJio, the almost ₹45 per share contribution from the Disney-Viacom JV, lower net debt, and decrease in capex intensity, Kotak revised their estimate of the fair value to ₹3,200 from ₹2,900.
Although Kotak is still bullish on RIL’s earnings growth (a three-year consolidated EBITDA CAGR of around 14%), it believes that the upside is constrained at the present market price.

Emkay Global Financial Services

Emkay kept its ‘add’ recommendation on the shares, with a ₹3,200 target price.
The brokerage firm anticipates stable conditions in retail and energy and gas, but is optimistic about the hikes in Jio tariffs. Due to increased profitability in Jio (because of ARPUs) and roll-over to Mar-26E, it has increased FY25–26E earnings by 2–5% each and the SOTP-based target price by 8% to ₹3,200.
In addition to the local brokerage firms mentioned above, eminent international brokerage firms such as Morgan Stanley and Jefferies continued to hold optimistic views on the stock.

Jefferies kept its buy call on Reliance with a ₹3,380 target price. According to CNBC-TV18, it increased the FY25 and FY26 EBITDA expectations by 3% and 1%, respectively.

According to CNBC-TV18, Morgan Stanley kept an overweight call on Reliance with a target price of ₹3,046).
Morgan Stanley stated, about Reliance, “see multiple catalysts for re-rating across verticals as the company exits fourth investment cycle,” as reported by CNBC-TV18.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

‘So I raped you’ Facebook message detained in France on 2021

In Lyon, France, Ian Thomas Cleary, a 31-year-old American...

Leader of Slovakia stabilized after 5 hours in surgery following assassination

Slovakia's Prime Minister, Robert Fico, is currently in stable...

Want quirky? The Packers might play four straight primetime games

GREEN BAY – The Packers are no strangers to...

Air Force Instructor Pilot Killed by Accidental Activation of Ejection Seat on Ground

WASHINGTON (AP) — An Air Force instructor pilot tragically...