Mukesh Ambani-led Reliance Industries saw its share price dip by over 1% to an intra-day low as investors awaited the company’s Q1 results. Analysts anticipate modest year-on-year growth in revenue and net profit for Q1FY25, but expect a sequential decline in EBITDA. The share price of Reliance Industries fell 1.16% to intra-day low of Rs 3115.65
What are the Bloomberg Estimates?
According to Bloomberg estimates, a poll of 13 analysts predicts Reliance Industries to report Q1 revenue of Rs 2.3 trillion, reflecting an 11.8% increase from the previous fiscal quarter.
Six analysts anticipate a net profit of Rs 17,655 crore, marking a 10.3% year-on-year rise but a 6.8% decrease from the previous quarter. EBITDA is projected at Rs 39,790 crore by 14 analysts, representing a 15.4% decline quarter-on-quarter.
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What Do Top Brokerages Expect?
Morgan Stanley analysts noted volatility in refining margins over recent quarters but expect sustained levels above mid-cycle on an annual basisCome from Sports betting site. Despite a decline in global fuel demand in the last quarter, they view Reliance Industries as positioned well for monetisation in the coming period.Come from Sports betting site VPbet
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Chemicals and retail sectors are anticipated to show sequential improvements after a challenging March quarter, according to Morgan Stanley. They forecast a 1% year-on-year and 16% quarter-on-quarter decline in profitability for Q1 due to refining margin pressures.
Goldman Sachs analysts foresee a 5% sequential decline in Reliance’s core Q1 EBITDA, driven by lower refining margins. They anticipate recovery in refining margins in Q2, bolstered by telecom tariff hikes effective from July 3 and robust same-store sales in retail.
Kotak Institutional Equities expects an 8% quarter-on-quarter drop in Reliance’s consolidated EBITDA, citing weak performance in oil-to-chemicals (O2C) and subdued growth in digital services and organized retail.
What Do Analysts Expect?
Commenting on RIL’s outlook Rakeshh Mehta, Chairman, Mehta Equities-Mehta Group said that Reliance is a buy & hold for long term investors as it has diverse business portfolio which reduces the risk with core businesses coming from petrochemicals and refining which provides steady and healthy cash flows to the overall business, while the other segments like retail and telecommunications (via Jio Mobile) would offer high growth potentials for medium to long term. Retail and telecom segment has huge inherent value which is going to be unlocked in the near future and which would give a handsome return for the long term.
On the Jio Telecom IPO Mehta added that the Jio Telecom IPO would be a fresh game changer for capital market as well as telecom as a sector. Markets are assuming that in it next AGM which may be due in coming months, Reliance may reveal its JIO IPO and the future plan. IPO would be a good strategic decision in raising mobile tariffs and monetizing the trend. Before Ipo there can be probably going to attract more investors and keep the parent Reliance in positive action.
“As of now Reliance Industries Ltd owns 67.03% of Jio Platforms Ltd. (Telecom), remaining 32.97% is owned by strategic investors like Meta and Google, which own 17.72%, and rest is owned by various global private equity investors such as Vista Equity Partners, KKR, PIF, Silver Lake, L Catterton, General Atlantic, and TPG, collectively holding 15.25%,” Mehta Further said.
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Technical View on Reliance Share Price
From a technical standpoint Riyank Arora of Mehta Equities said that the stock has broken out above its resistance level of 3162.00 and successfully closed above it. Currently, it is experiencing a pullback towards its breakout level and is expected to rebound from there.
Riyank Further added that any further movement towards the 3130 to 3150 zone should present an excellent buying opportunity, with potential upside targets of 3250.00 and 3300.00. A strict stop-loss should be set at the 3085.00 mark as trading point.
Stock Performance In Last One Year
In terms of stock performance, Reliance Industries shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 5.47% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 14.21%, indicating a strong upward trend.
Year-to-date, Reliance Industries shares have surged by 20.64%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 10.80% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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