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Brokerages Bullish On RIL Stock After Q1FY21 Results

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The stake sale in RIL's fuel retailing arm to BP Plc, Jio's outperformance and low tax outgo has enabled the conglomerate to post a profit of Rs. 13248 crore, a net increase of 31% despite the pandemic for the period ended June 2020. Without the deal with BP Plc, the company's PBT is lower by 41% to Rs 8,542 crore for the first quarter.

 
Brokerages Bullish On RIL Stock After Q1FY21 Results

Here are the ratings and different target price set by different brokerages in RIL

 
BrokerageRating before resultRating after resultTP before resultTP after result
BofA SecuritiesBuyBuy23552355
BernsteinOutperformOutperform18701870
CLSAOutperformOutperform22502250
Credit SuisseNeutralNeutral16901690
EdelweissHoldHold21052105
EmkayBuyHold-1850
Goldman SachsBuyBuy23252325
JP MorganNeutralNeutral14901860
Kotak InsAddAdd21502150
NomuraBuyBuy22002200

"RIL's 1QFY21 (June quarter) results were marked by weaker performance of O2C and retail business, partly offset by higher contribution from Jio. A sharp rise in finance cost was offset by reduction in depreciation rate for O2C assets and o one-off deferred tax credit due to O2C restructuring," said Kotak Institutional Equities.

CLSA is optimistic on the Reliance Industries stock on the premise that its underweight position in portfolios will trigger the gains in the stock price going ahead (in the long term), but the short term valuation surprise shall be hard to come up, on sharp run up since March lows.

Also Credit Suisse warned on the risk that the company's retail business faces amid the pandemic and said, "Majority of Fashion stores are yet to reopen and footfalls remain weak. Thus, 2QFY21 (September quarter) should be weak too for Retail. On Energy front too, margin recovery is likely to be muted, given high capacity additions in both polymer and polyester segments," said Credit Suisse.

GoodReturns.in

Read more about: reliance industries ril
Story first published: Saturday, August 1, 2020, 12:12 [IST]
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