Diversified conglomerate Reliance Industries (RIL) on Friday reported a year-on-year (YoY) drop of 11% in the consolidated net profit for the quarter ended June 2023 to Rs 16,011 crore. Consolidated revenue declined 5.3% YoY to Rs 2.11 lakh crore.
The bottomline was lower than an ET Now poll of Rs 16,421 crore. Sequentially, the consolidated topline declined 2.5%, and the bottomline fell steeper by 17%. The board recommended a dividend payout of Rs 9 a share, subject to the approval of the shareholders.
This is what top brokerages recommended:
Goldman Sachs: Buy | Target: Rs 2,725
Brokerage Goldman Sachs has retained a ‘Buy’ on Reliance Industries stock. RIL witnessed robust grocery growth in the June quarter. Jio saw a sharp increase in subscriber growth though the energy business saw a decline of 4% despite a sharp pullback in GRMs. Recovering GRMs and gas volume growth to support sequential growth, Goldman Sachs said.
Kotak: Add | Target: Rs 2,700
Kotak has downgraded RIL to ‘Add’ while putting the price target at Rs 2,700. RIL’s Q1FY24 consolidated EBITDA was 1% ahead of its estimates. O2C was weak, but the impact was offset by better E&P, retail and digital. We remain positive on each key business. But we do not see any catalyst in the near term. Q1 capex at Rs 39,600 crore, although lower QoQ, remains elevated. However, the like-for-like net debt increase was marginal. We continue to believe that net debt has likely peaked. After a recent good run-up ahead of the JFSL demerger (3M RIL +19%), the near-term upside seems limited.
Nuvama: Buy | Target: Rs 3,088
Nuvama has recommended a ‘Buy’ on the counter with a 12-month view and price target of Rs 3,088. The Q1 earnings were in line with Nuvama’s earnings. O2C shall remain weak in the near-term led by weak GRMs and low petchem demand offset by low ethane prices. We reiterate ‘Golden refining era’ highlighting >USD10GRMs from CY24. Upstream to parallel retail’s FY24E EBITDA as KG-D6 production ramps up. New energy venture is now gaining traction (execution underway) and a new energy (upgrade) plan for Green-H2 shall re-rate valuation besides huge synergies with O2C, Nuvama said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)