Reliance Industries: Reliance fell more than 3%: most of the negatives are priced, reconstruction processing mechanisms are still a concern

Mumbai: Shares Reliance Industries () It fell 3.31% to Rs 2,420.15 as earnings for the June quarter contradicted street estimates and brokerages cut earnings estimates on stock.

The group led by Mukesh Ambani on Friday reported a 46.3% increase in consolidated net profit to INR 17,955 crore.

Analysts Arrow said, hurt by concerns about unexpected tax on me diesel Gasoline exports were recently priced at most negatives and valuations are attractive although a runaway rally is unlikely soon.

“GRM reduced and then introduced a windfall profit tax and then lowered – these factors have affected inventory recently. In the first quarter performance, there was a lag of about 6-7% on the operating level,” Hemange said. Jani, Head of Equity Strategy, Brokerage and Distribution at


“The trend of grievance redress mechanisms continues to decline and this will be a drag on the stock. If one has a medium to long-term perspective, one can look at the stock as many of these negatives have already been priced.”

decline in shares

Major IT due to weaker-than-expected quarterly earnings put pressure on benchmark indexes. The Sensex closed down 306 points, or 0.55 percent, at 55,766 points and Nifty closed down 88.45 points, or 0.53 percent, at 16,631. Analysts see ₹2,380-₹2,400 as critical levels for Reliance’s shares on the technical charts.

Rajesh Palviya, Head of Technology and Derivatives, Axis Collateral.

Brokerages largely maintained an upward rating

Although some have lowered earnings estimates.

“The increased focus on 5G readiness, the end of Jio subscriber consolidation, continued momentum in retail expansion, advances in the one-stop channel and private label contribution have been key operational positives. Reliance delivers some of the strongest earnings growth in large-cap space, India, CLSA said while holding ‘buy’ with a target price of INR 2,955.

It maintained a “buy” rating while reducing the target price to $2,950 from INR 3,000. The brokerage said it has cut profit estimates for fiscal years 23 and 24 by 4.3% and 0.6%, respectively, in order to take into account the normalization of the tax rate to about 25% and moderation in the estimate of the gross refining margin.

Kotak’s institutional stock also maintained a “buy” rating on Reliance Industries and cut its target price to ₹2,980 from ₹3,050. Similarly, YES Securities retained the ‘add-on’ and lowered its target price to $2,755 from $2,840. JP Morgan maintained an ‘overweight’ rating with a target price of INR 3,170.


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