Reliance Industries Limited (RIL) witnessed a mild volatility in its share price during early trade on Tuesday, April 23. After opening at 2,958 against the previous close of 2,959.70, the stock initially slipped to 2,952.50 on the National Stock Exchange (NSE). However, it quickly rebounded and traded 0.35% higher at 2,969.95 around 9:25 am.
RIL’s share price performance over the past year has been impressive, with a rise of about 39%. This outperforms the Nifty 50 index, which has gained nearly 27% during the same period. The stock recorded its 52-week high of 3,024.90 on March 4, 2023, while its 52-week low was 2,220.30 on October 26, 2022.
RIL’s financial results for the March quarter (Q4FY24) showed a 10.8% year-on-year (YoY) increase in gross revenue to 2,64,834 crore. However, its profit after tax (PAT) remained largely flat at 21,243 crore compared to 21,327 crore in the corresponding quarter of the previous fiscal year. The company attributed its growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) to 14.3% YoY to 47,150 crore to strong contributions from all its businesses.
Several brokerage firms have maintained their positive outlook on RIL following its Q4 earnings announcement. Motilal Oswal Financial Services retained its buy rating with a revised target price of 3,245, citing the company’s strong performance in the oil-to-chemicals (O2C) segment and growth potential in its consumer businesses.
Nuvama Wealth Management raised its target price to 3,500 and maintained a buy recommendation. The brokerage firm expects RIL’s consumer businesses to contribute significantly to its EBITDA from FY25, given their strong expansion and customer base.
Kotak Institutional Equities maintained an add call on RIL, revising its fair value to 3,200 from 2,900 previously. While acknowledging the company’s earnings growth potential, Kotak noted that the upside seems limited at the current market price.
Emkay Global Financial Services retained its add call with a target price of 3,200. The brokerage firm expressed optimism about Jio tariff hikes and expects RIL’s oil and gas and retail segments to remain stable.
International brokerage firms such as Jefferies and Morgan Stanley also maintained their positive views on RIL. Jefferies advised a buy call with a target price of 3,380, raising its EBITDA estimates for FY25 and FY26. Morgan Stanley maintained an overweight call with a target price of 3,046, citing multiple catalysts for re-rating across the company’s verticals.
