Reliance Industries shares rise 6 per cent after Q2 results
The company reported a 41 per cent year-on-year increase in consolidated net profit for the September quarter.
Shares of Mukesh Ambani-led Reliance Industries Ltd (RIL) climbed as much as 6 per cent to Rs 1,234 on the BSE on Monday. According to The Economic Times, the company's consolidated net profit for shareholders grew 41 per cent year-on-year to Rs 25,548 crore in the September quarter, up from Rs 18,165 crore in the same period last year.
Revenue from operations rose 29 per cent year-on-year to Rs 3.32 lakh crore, compared to Rs 2.58 lakh crore in the previous year's corresponding quarter. The oil-to-chemicals (O2C) segment was the primary driver of growth, with its EBITDA increasing 68 per cent year-on-year to a record Rs 25,203 crore.
Jefferies maintained a Buy rating on the stock with a target price of Rs 1,710, suggesting a 47 per cent upside. The brokerage noted that strong O2C performance helped consolidated EBITDA exceed estimates by 6 per cent, even as Retail missed estimates by 6 per cent.
Nomura cut its target price for RIL to Rs 1,560 from Rs 1,690, while forecasting a 34 per cent upside. Nomura reported that consolidated EBITDA was 9 per cent above its estimate, driven by the O2C segment, though Retail EBITDA fell 10 per cent short of its projections.
Nuvama Institutional Equities kept its Buy rating with a target price of Rs 1,703, implying a 25 per cent upside. The brokerage noted that RIL's net debt of Rs 1.17 lakh crore decreased by 1 per cent year-on-year.