Brokerages Bullish On RIL Stock After Q1FY21 Results

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

Brokerage	Rating before result	Rating after result	TP before result	TP after result
BofA Securities	Buy	Buy	2355	2355
Bernstein	Outperform	Outperform	1870	1870
CLSA	Outperform	Outperform	2250	2250
Credit Suisse	Neutral	Neutral	1690	1690
Edelweiss	Hold	Hold	2105	2105
Emkay	Buy	Hold	-	1850
Goldman Sachs	Buy	Buy	2325	2325
JP Morgan	Neutral	Neutral	1490	1860
Kotak Ins	Add	Add	2150	2150
Nomura	Buy	Buy	2200	2200

"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.

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