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Reliance Industries Ltd (RIL) shares were in focus on Monday after the conglomerate's financial results for the July-September period exceeded Street estimates.
Reliance Industries shares moved higher in early deals on Monday. At 9:40 am, the RIL stock traded 0.3 percent higher at Rs 2,634.8 on the BSE while the headline Sensex index was trading flat. Initially, the Reliance Industries stock rose as much as 2.7 percent before giving up most of those gains.
Reliance Industries, after market hours on Friday, posted a net profit of Rs 13,680 crore for the quarter ended September 30, up 11.5 percent sequentially. Quarterly revenues stood at Rs 1.67 lakh crore for the conglomerate in the July-September period, compared to Rs 1.4 lakh crore in the previous quarter.
Analysts in a CNBC-TV18 poll had predicted Reliance Industries to post a strong set of financial results, with net profit estimated at Rs 12,946 crore on revenues of Rs 1.58 lakh crore. (Read more on RIL Q2 results)
Here's what brokerages said:
Reliance Industries' standalone and consolidated EBITDA, EBIT and PAT numbers were ahead of the brokerage's estimates. The beat in the retail business and improvement in the upstream unit offset the miss on the oil-to-chemical front, CLSA said.
The brokerage raised its EPS estimates by 3-5 percent. CLSA has retained a 'buy' call on Reliance Industries with a target price of Rs 2,820.
The brokerage has a 'neutral' call on Reliance Industries with a raised target price of Rs 2,450. The group's retail and oil-to-chemical businesses should post strong performances in Q3, according to Credit Suisse.
The success of JioPhone Next is crucial for the company's target of 500 million subscribers. The stock is priced in an enterprise value of $100 billion for Jio, $100 billion for the retail unit and $75 billion for the O2C business, according to Credit Suisse.
The brokerage has a 'buy' call on Reliance Industries with a target price of Rs 3,000. The company's EBITDA in Q2 was in line with estimates on account of the beat in the retail business, the inline performance of the OTC unit, and despite the miss in the digital arm, Jio, according to Jefferies. Key highlights of the quarter were Reliance Retail's large store addition, improving footfalls and profitability, whereas Jio's decline in subscribers was a key disappointment, according to Jefferies.
The brokerage has an 'overweight' call on Reliance Industries with a target price of Rs 2,925. The results beat in Q2 adds a tailwind to the earnings upgrade cycle, according to Morgan Stanley. Refining, broadband subscribers and the retail margin should drive upgrades in 2022, it said.