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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

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