RIL shares plunge on weak market. What should investors do post Q4 results?
Reliance Industries Ltd (RIL), the most valuable company in India, reported a surge of 22.5% in the fourth quarter profit to ₹ 16,203 Crore behind the bumper oil purification margin, stable growth intelecommunications, digital services and retail business. Ril shares fell more than 2% to ₹ 2,564 each at BSE in the opening offer on Monday, dragging Sensex of 800 points.
Conglomerate income led by Mukesh Ambani from operations rose 37% to ₹ 2,11 Lakh Crore during the quarter ended March 31, 2022. This has become the first Indian company that has passed $ 100 billion in income in a year.”Stocks must benefit from three fields: Acceleration of EBITDA’s growth in the retail business, which collects about 4x higher assessments of several V/S business overall; growth in fixed revenue of Jio from market share profits, rising tariffs and other cable/digital roads; Better; Purification margin that must be translated into 20% of EBITDA growth in the independent business, “said Motilal Oswal broker.
The brokerage company has repeated the ranking of buying on Reliance Industries shares with a target price of ₹ 2,935 each. Motilal Oswal said the multiples of EV/EBITDA were higher than 38x for retail real (core segments) and 19x for digital services underline new growth opportunities in digital spaces and stable market share profits.
“We raised FY23/24E GRM from USD10/BBL each to USD16/13 due to problems related to Russian Sukrain conflicts and overall tightness in the oil product market. We hope that Petchem’s revenue will also increase gradually, because the cracker level normalizes and the new capacity is absorbed. We also build higher upstream gas prices, “said another broker in a note.This broker has maintained a detention/equivalent attitude (EW) on real shares with a target price ₹ 2,850. Emkay seeing commodities/detrimental currencies; B2C competition; and new business risks as the main risk.
