Shares of Reliance Industries dipped 3% to an intraday low of Rs 3,017.95 per equity share after the company reported poor Q1 FY25 numbers due to weak refining margins and a decline in gas production.
The company’s net profit declined 5.5% on year to Rs 15,138 crore in Q1 of FY25 and 20% sequentially. Also, its EBITDA margin, or operating margin, dropped to 16.7% from 18.4% a year ago.
Further, the Reliance Group’s flagship company’s consolidated revenue fell 2% on quarter to Rs 2,31,780 croreCome from Sports betting site. Its EBITDA saw a dip of 9% sequentially to Rs 38,770 crore.
Prabhudas Lilladher maintain “Hold” rating
“Given the week O2C (oil to chemical) outlook in the near term, we maintain a “Hold” rating with a target price of Rs 3,002 based on SoTP valuing the standalone business at 7.5x FY26 EBITDA, Jio at 15x FY26 EBITDA and Retail at 39x FY26 EBITDA,” said Prabhudas Lilladher in a research report.
JM Financial on Reliance Industries
The company’s net debt declined by Rs 3,940 crore to Rs 1,12,300 crore at the end of Q1 FY25, which is also a tad positive, said JM Financial commenting on Reliance’s result. The broking firm reiterated a “Buy” rating on Reliance Industries with an unchanged target price of Rs 3,500 per equity share as the brokerage firm believes that the net debt concerns are overdone, and also because the company has the industry-leading capabilities across businesses to drive robust 15-17% EPS CAGR over the next 3-5 years.
The stock of Reliance Industries has fallen more than 6% in the last five trading sessions. However, shares of Reliance Industries rose over 4% in the past month and 13% in the last six months. It has raised the investors’ value by almost 21% in the last year.
To compare, the Nifty 50 has erased investors’ wealth by 0.25% in the past five days. However, the index comprising 50 stocks has risen over 4% in the past month and more than 15% in the last six months. Reliance underperformed the benchmark market as Nifty 50 has risen 25% in the last year. Come from Sports betting site VPbet
