Reliance Industries shares tank 2% after Q1 results disappoint; should you buy, sell, or hold RIL stock-
时间:2024-06-26 07:22:16 阅读(143)
Reliance Industries share price fell 2.3% to a low of Rs 2,481 in trade on Monday as the street factored in Mukesh Ambani-led RIL’s first quarterly earnings for the fiscal year. Reliance Industries released its first quarter earnings with profit at Rs 16,011 crore, down 10.8% in comparison to Rs 17,955 crore during the first quarter of FY23, on account of softening demand and a drop in petrochemical margins, which have tanked from record highs last year. On account of higher finance cost and increased depreciation. It posted revenue from operations at Rs 2,10,831 crore, down 5.3% on-year. Should you buy, sell or hold RIL shares?ICICI Securities: Add
“The oil-to-chemical (OTC) segment lagged with a 27% YoY decline in segmental EBIT, reflective of the weak demand trends in downstream petroleum segment. Upstream, retail and digital services continued to show good YoY momentum – with sharply higher gas production from the new fields and sustained improvement in retail footprint driving growth. Going forward, we do see earnings momentum supported by retail, upstream and RJio for FY24E. Also, tight global supply may see OTC prospects improve over H2FY24E. Progress on the new energy business, improvement in RJio and retail are key drivers going forward for Reliance. We retain ADD on the stock, with our core thesis of ‘high capex, low FCF yields’ and ‘low return ratios offsetting earnings strength’ remaining unchanged as of now. Target price at Rs 2,670.”
“Using SOTP, we value the Refining and Petrochemical segments at 7.5x EV/EBITDA, arriving at a valuation of INR904/share for Standalone business. We ascribe an equity valuation of INR750/share to RJio and INR1,500/share to Reliance Retail, factoring in the recent stake sale. We have further included an equity valuation of INR 16/share pertaining to New energy on book value. Our TP is adjusted for the Jio Financial Services (JFS) valuation. We reiterate our BUY rating with a TP of INR 2,935.”
猜你喜欢
- US Stocks- Wall Street finishes higher boosted by growth stocks such as Apple, Tesla; Nasdaq up 2
- US Stocks- Futures rise as focus turns to Powell speech
- Managing flows- Investment trend on track to breach Rs 100 lakh crore AUM in MFs over next few years say experts
- Majority of Nifty 500 shares waiting for earnings before following Nifty’s rally; use ‘buy on dips’ approach
- Tata Steel Q2 loss at 6196 crore; should you buy, sell or hold stock-
- Market short-term texture mildly overbought; stick to level-based trading; Adani Ports among stocks to buy
- tioned itself as a premium retailer of brands.
The move had also prompted the country’s largest organised retailer Reliance Retail to step into the value retail segment with Yousta, which was announced on Thursday. Like Intune, Yousta began its operations in Hyderabad, with plans to expand across the country. Intune has three stores – two in Hyderabad and one in Dombivli, near Mumbai, with plans to add another three more outlets in the coming months.
Nair had admitted on a recent earnings call that the apparel segment in general was witnessing moderation and that the value retail foray by Shoppers Stop could help the company tap into the growing trend for affordable fashion and lifestyle products, aiding sales growth.
That was an important statement for Shoppers Stop, which reported a nearly 37% year-on-year drop in net profit to Rs 14.5 crore in the June quarter of FY24, even as revenue grew only 4.8% versus the previous year to nearly Rs 994 crore.
On a yearly basis, the company had last reported a net profit of nearly Rs 114 crore in FY23 after three consecutive years of loss between FY20 and FY22 due to the Covid-19 pandemic. FY23 topline also jumped nearly 60% year-on-year to Rs 4,022 crore, the highest in six years, its results showed.
- UltraTech Cement’s new acquisition boosts bullish outlook, Jefferies recommends Buy with 11% upside target of Rs 9700
- Manufacturing PMI falls to 18-month low in December