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.
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|
"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.