Shares of oil-to-retail conglomerate Reliance Industries (RIL) on Monday fell 3.5% to Rs 1,423 on BSE as Q1 results didn't provide the growth confidence that the market was looking for, but Mukesh Ambani's plan to double earnings by 2029 left room for optimism in the air. While Kotak Equities downgraded the bluechip Nifty stock to add from buy rating, JP Morgan and Jefferies have upgraded their target price by 8% and 5%, respectively.
Out of 27 brokerages with coverage on the stock, 7 of them have target prices of at least Rs 1,700-mark. Nuvama remains the most bullish with the highest target price of Rs 1,767 on RIL. Others with targets of Rs 1,700 or more are Axis Capital, Jefferies, BNP Paribas, Goldman Sachs, and JM Financial.
On the other hand, Ambit is the biggest bear on RIL with a target price as low as Rs 1,300 and a sell call. Out of the 27 brokerage houses, 25 have a Buy/Add recommendation.
The median target price of all brokerages stands at Rs 1,640, about 15% upside from current price.
"RIL's June quarter earnings will not inspire the confidence we had hoped for both in energy and consumer retail. However, the miss in energy earnings was caused by temporary factors related to lower availability of cheaper crudes and expensive fuel oil; it should bounce back sharply in the current quarter. The weak top--line growth in retail reflects a very bumpy path ahead. The bright spot was New Energy, which we believe will surprise," Morgan Stanley said while maintaining its overweight call with a target price of Rs 1,617.
Also Read | Explained: Why Reliance Industries shares fell 3% after reporting highest-ever profit
Most analysts said RIL's Q1 results were a mixed bag with positive momentum in Jio offset by slower-than-forecast retail revenue.
Kotak Institutional Equities, which downgraded the stock to add from buy rating, also reduced the target price from Rs 1,650 to Rs 1,520, saying that valuations are richer and the upside looks limited after the recent run-up in share prices.
RIL shares have rallied around 17% so far in the calendar year.
Investors will now focus on the upcoming AGM within two months and look for further announcements on growth plans in FMCG, the ramp-up of new energy facilities, the expansion of the media business, acceleration of growth in retail, the ramp-up of subscriber additions and monetisation for Jio along and the IPO of Jio, CLSA said.
BofA Securities said beyond Q1, it continues to see steady to
improving momentum across all businesses.
Out of 27 brokerages with coverage on the stock, 7 of them have target prices of at least Rs 1,700-mark. Nuvama remains the most bullish with the highest target price of Rs 1,767 on RIL. Others with targets of Rs 1,700 or more are Axis Capital, Jefferies, BNP Paribas, Goldman Sachs, and JM Financial.
On the other hand, Ambit is the biggest bear on RIL with a target price as low as Rs 1,300 and a sell call. Out of the 27 brokerage houses, 25 have a Buy/Add recommendation.
The median target price of all brokerages stands at Rs 1,640, about 15% upside from current price.
"RIL's June quarter earnings will not inspire the confidence we had hoped for both in energy and consumer retail. However, the miss in energy earnings was caused by temporary factors related to lower availability of cheaper crudes and expensive fuel oil; it should bounce back sharply in the current quarter. The weak top--line growth in retail reflects a very bumpy path ahead. The bright spot was New Energy, which we believe will surprise," Morgan Stanley said while maintaining its overweight call with a target price of Rs 1,617.
Also Read | Explained: Why Reliance Industries shares fell 3% after reporting highest-ever profit
Most analysts said RIL's Q1 results were a mixed bag with positive momentum in Jio offset by slower-than-forecast retail revenue.
Kotak Institutional Equities, which downgraded the stock to add from buy rating, also reduced the target price from Rs 1,650 to Rs 1,520, saying that valuations are richer and the upside looks limited after the recent run-up in share prices.
RIL shares have rallied around 17% so far in the calendar year.
Investors will now focus on the upcoming AGM within two months and look for further announcements on growth plans in FMCG, the ramp-up of new energy facilities, the expansion of the media business, acceleration of growth in retail, the ramp-up of subscriber additions and monetisation for Jio along and the IPO of Jio, CLSA said.
BofA Securities said beyond Q1, it continues to see steady to
improving momentum across all businesses.
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