Shares of Mukesh Ambani-controlled Reliance Industries (RIL) slipped almost 2 % on Friday, a day after the organization stated its June quarter numbers for the fiscal year 2020-21 (Q1FY21).
At 09:39 am, the inventory was trading over 1.63 % lower at Rs 2,074 on the BSE. In comparison, the Sample BSE Sensex was buying and selling 32 points or 0.09 % higher at 37,768 levels. During the session, the inventory hit a low of Rs 2,070.70 towards Thursday’s close of 2,108.65.
RIL’s shares had hit an all-time excessive of Rs 2,198.70 on July 27 whereas its 52-week low stands at Rs 867.82, touched on March 23, 2020.
For the April-June period, Reliance Industries suggested a profit before tax of Rs 8,542 crore towards Rs 14,366 crore reported during the identical quarter final year. The company’s net profit, however, rose about 31 % to Rs 13,233 crore towards Rs 10,104 crore in the same quarter last year.
Net sales in the June quarter fell 44 % to Rs 88,253 crore towards Rs 1.57 trillion in the same quarter a year ago.
Further, the company’s telecom arm, Reliance Jio, reported a pre-tax profit of Rs 3,375 crore in the April to June quarter of financial year 2020-21, driven by 33.7 % growth in revenue. In the same period final year, the operator had reported pre-tax profit of Rs 1,369 crore, showing a leap of nearly 147 %.
Analysts at Prabhudas Lilladher, in a result evaluation note, said, Reliance Industries with its mentioned intention to monetise and forge global partnership across businesses, is well-positioned to incubate new enterprise and pursue inorganic possibilities given its liquid balance sheet. Despite the sharp run-up in inventory costs (plus140 % in the last four months), we consider positive news flow on global partnerships or stake sale is likely to keep valuations at an elevated stage. The brokerage has maintained a “BUY” rating on the inventory with a revised target rate of Rs 2,170 (Rs 1,828 earlier).
Share khan, too, has a “BUY” rating on RIL stock with the target price of Rs 2,400. The brokerage notes that the current fund-raising has strengthened Reliance Industries balance sheet (become net debt-free) and potential monetisation of the stake in retail enterprise and probably record of Jio should create long-term price for investors.