Reliance Industries Share Price Surge Over 2% After Reporting Q2 Results Above Estimates; Here’s What Top Brokerages Say

Reliance Industries (RIL) share price rose 2.30% in early morning trade on Monday, October 30, on BSE. This happened after the Mukesh Ambani-led conglomerate reported strong Q2 results on Friday beating estimates.

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The stock opened at Rs 2,279 per piece on Monday, against previous close at Rs 2,265 per share on Friday and touched an intraday high to Rs 2,319 at 11:00 am IST, higher by 2.38% since morning.

Reliance Industries stock has gained only a percent in the last one year, meanwhile, the equity benchmark Sensex has gained 7% in the same period. The stock had hit its fresh 52-week high of Rs 2,635.17 on July 19 this year, and 52-week low of Rs 2,012.14 on March 20, 2023, on BSE.

RIL, on Friday, announced a robust financial performance for the September quarter, with a substantial 29.7% year-on-year increase in its consolidated net profit, reaching Rs 19,878 crore. EBITDA also saw a notable 30.2% year-on-year growth, reaching Rs 44,867 crore, and the EBITDA margin experienced a significant 390 basis points surge compared to the previous year, now standing at 17.5%.

Nevertheless, gross revenue managed a slight YoY increase of 1.2 percent, reaching Rs 2,55,996 crore, thanks to the contribution of consumer businesses.

Brokerages Take on Reliance Stock

Motilal Oswal recommends a purchase (Buy) of the stock with a target price set at Rs 2,760. "Using SOTP, we value the refining and petrochemical segment at 7.5 times FY25E EV/EBITDA to arrive at a valuation of Rs 878 per share for standalone. We ascribe an equity valuation of Rs 760 per share to RJio and Rs 1,353 per share to Reliance Retail and Rs 16 per share towards the new age business," said Motilal Oswal.

Meanwhile, Prabhudas Lilladher Pvt Ltd. also maintained the ‘Buy’ tag on conglomerate stock with a target price of Rs 2,618. 

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“Reliance Industries’ (RIL) consolidated revenue grew 12% QoQ to Rs 2,319 bn (PLe: Rs 2,371 bn). EBITDA rose 8% QoQ to Rs 409.7 bn (PLe: Rs 436.6 bn) while PAT grew 9% QoQ to Rs 173.9 bn (PLe: Rs194.2 bn). Retail EBITDA grew 32% YoY led by grocery and fashion/lifestyle. O2C EBITDA grew sharply by 63% YoY led by strong petrol and PVC margins, optimized feedstock sourcing and lower SAED. ARPU stood at Rs 181.7 while total subscribers stand at 459.7mn. The stock is currently trading at 11.4x EV/EBITDA. We maintain BUY rating with a TP of Rs 2618, based on SoTP valuing the standalone business at 7.5x FY26 EV/EBITDA), Jio at 15x FY26 EV/EBITDA and Retail at 37x FY26 EV/EBITDA,” said Swarnendu Bhushan - Co-Head of Research, Prabhudas Lilladher Pvt Ltd.