Reliance share price: The price of Reliance’s shares fell by about 3% during Monday’s morning sessions following the announcement of the company’s Q1 earnings on Friday after market hours. After opening at ₹3017.50, the price of Reliance shares fell to lows of ₹3,018.05, which represented a nearly 3% decrease on the NSE compared to the previous close of ₹3110. Reliance Industries’ consolidated net profit of ₹17,445 crore decreased by slightly more than 4% year over year, but it was in line with analyst consensus projections. The oil to chemical segment’s downturn was the reason for the anticipated profits reduction. These are the opinions of analysts.
Positively rated Jefferies keeping an eye on the retail sector
Although Jefferies India Ltd. has maintained Buy recommendations on the price of Reliance Industries shares, it has lowered its target price to ₹3525 (from ₹3580 earlier) due to changes made to their forecasts of earnings before interest, tax, depreciation, and amortization (EBITDA). Even yet, their goal price still represents a 14% increase from the current levels, which are almost ₹3,079.50. Jefferies is keeping an eye on the retail sector’s potential for growth.
According to Jefferies’ calculations, Consolidated Earnings before Interest Tax Depreciation and Amortization (Ebitda) decreased 9% sequentially but remained consistent with their projections at almost ₹38,800 crore. Jio, the telecom division, and Oil to Chemicals (O2C) met their projections, but Retail’s net profit fell 4% short due to increased net interest expenditure and tax rates.
According to Jefferies, retail revenue growth (7% core) slowed to a multi-quarter low, with core revenue per square foot declining 10% YoY on a weaker base due to ongoing store and B2B rationalization and weakening Style and Way of Life
Antique claims that poor O2C and Retail caused a miss.
Antique Stock Broking analysts reported that weak O2C and retail contributed to results falling short of projections. With an estimated ₹38800 crore, Reliance’s 1QFY25 EBITda was less than both their and the consensus estimates of ₹40200 crore and ₹39800 crore. The drop was mostly predicted and was mostly caused by bad O2C earnings because of weaker cracks; nonetheless, retail’s net profit fell short of projections.
Due to the deterioration in O2C earnings, Antique has slashed their projection for FY25 EBITDA by 5%. Their estimates for FY26 and FY27 have remained mostly intact. They also lower their target price to ₹3268 for Reliance Industries stock.
Motilal Oswal believes the Jio IPO will increase valuation.
Motilal Oswal Financial Services stated that they are structurally positive on the refining business given that capacity development globally is trailing growth in oil demand, and they have assigned Buy recommendations to the Reliance share price. In the telecom industry, a 12% compound annual growth rate (CAGR) is projected for average revenues per user (ARPU) between FY24 and FY26. Furthermore, they believe that RJio’s prospective IPO will increase the telecom company’s valuation. They are nevertheless optimistic about the retail sector, where they project 19% sales growth and an EBITDA CAGR of each for FY24–26. With Reliance’s share price at ₹3409, their goal price, there is more than 10% upside.
Also read | Reliance Share price: According to Jefferies, Jio may list by 2025, Who thinks the stock will rise 7–15%?
(Disclaimer: The opinions expressed here are not affiliated with Businessuncover; rather, they represent the opinions of certain analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.)
