Reliance share price up over 1% post-Q4 results. Buy, sell or hold?

Stock market today: After announcement of strong fourth quarter results for the financial year 2022-23, Reliance Industries Ltd or RIL shares today surged to the tune one per cent. Reliance share price today opened upside and went on to hit intraday high of 2,380.90 apiece on NSE. However, RIL share price soon witnessed profit booking and the stock gave up most of its early morning gains.

According to stock market experts, RIL share price has strong support placed at 2285 whereas it is facing resistance at 2420. They said that after the robust quarterly numbers, Reliance share price may go up to 2750 apiece once it breaches its current resistance of 2420 per share.

Triggers for Reliance share price today

Speaking on reason for rise in Reliance share price today, Parul Rao, Research Analyst, SAMCO Securities said, “Reliance Industries seems to be hitting all the right nerves across its businesses during the January-March period i.e. Q4FY ‘23. Despite being topline flat YoY, the company posted its highest-ever quarterly profits of 19,299 crores, a jump of 19% YoY. The consumer-facing business took a front seat and drove the earnings. The company maintains a positive outlook across the O2C chain-driven business. The Oil & Gas segment is poised to be a source of significant value and sustained earnings growth in the coming years. Reliance Jio is expected to continue its leadership position with a healthy subscriber base and new offerings.”

Echoing with SAMCO Securities views, Manish Chowdhury, Head of Research at Stoxbox said, “Reliance Industries Ltd. delivered robust numbers due to good operating performance, with growth momentum across all businesses. The company’s telecom business was able to deliver record revenues and EBITDA, led by full impact of tariff hike, ramp-up of wireline services and continued subscriber addition for mobility services. It launched True 5G services which are now available across 2300 cities and towns in India. Its retail venture had another quarter of strong progress due to growth in Grocery, Consumer Electronics and Fashion & Lifestyle. Their O2C business revenue declined due to sharp reduction in crude oil prices and lower price realisation of downstream products. However, the O2C segment posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows.”

Manish Chowdhury went on to add that RIL’s implementation of new energy Giga factories at Jamnagar is making significant progress as a stepping stone in the green energy sector.

“We believe that the company is ticking the right boxes and is becoming a threat to established players in sectors wherein it has entered recently. The nimble footing and changing dynamics of the company’s overall business makes it attractive as a long term play,” Manish Chowdhury said.


RIL share price outlook

On important levels in regard to Reliance shares, Anuj Gupta, Vice President — Research at IIFL Securities said, “Reliance share price is currently in 2285 to 2420 range. On breaching 2420 hurdle this Sensex heavyweight is expected to become highly bullish. So, those who have RIL shares in portfolio should hold the stock maintaining stop loss at 2285 and any dip in the scrip should be seen as buying opportunity.”

Giving ‘buy’ tag to Reliance shares, Sabri Hazarika, Senior Research Analyst at Emkay Global Financial Services said, “We are constructive on RIL, given current valuations. Profitability outlook is stable-to-steady for O2C, Upstream and Retail, while the Jio Finserv listing (expected by Oct-23), commissioning of battery-PV giga-factories (in 1-2 years) and 5G deployment are key positive triggers. We keep FY24/25E EPS and TP largely unchanged, building some delay in Jio tariff hikes (6%/2% ARPU cut and slight reduction in target multiple), which would though offset by rise in other segment earnings. Our net debt assumes 5G spectrum. We retain BUY; TP of Rs2,750/sh.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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