The Economic Times daily newspaper is available online now.

    Bernstein raises RIL target on strength in all segments

    Synopsis

    The Mukesh Ambani-led company had reported a consolidated net profit of ₹16,203 crore for the March quarter, up 22.5% compared to ₹13,227 crore for the same period in the previous financial year. Consolidated revenue grew 36.8% from the year-ago level to ₹2.1 lakh crore.

    Bernstein Raises RIL Target on Strength in all Segments
    Mumbai: Bernstein has upgraded its target price on oil- to-telecom conglomerate Reliance Industries to ₹3,360 from ₹2,830 with an outperform rating citing strength across all business segments. Shares of Reliance Industries ended up 2% at ₹2,579 on Wednesday.

    The foreign brokerage said Reliance Industries' refining margins could rise to record levels of $25.5 per barrel against $9.8 per barrel in FY22 with supply shortages and lower feedback prices. Bernstein said Reliance has also taken advantage of Russian crude but that may not be a sustainable factor due to increased scrutiny.

    While the oil-to-chemicals business of Reliance could deliver record earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹84,500 crore - 25% higher than what consensus estimates predict, the telecom arm Jio is also set to deliver strong results due to tariff hikes, said Bernstein.

    "Stage is set for more tariff hikes driven by stable industry structure and government reforms," said Bernstein.

    Reliance's retail growth outlook has improved as the economy has opened up with footfalls at 104% of pre-Covid levels and strong store additions, the report added.

    Reliance IndAgencies

    The Mukesh Ambani-led company had reported a consolidated net profit of ₹16,203 crore for the March quarter, up 22.5% compared to ₹13,227 crore for the same period in the previous financial year. Consolidated revenue grew 36.8% from the year-ago level to ₹2.1 lakh crore.

    The company has also begun implementing its succession plan with the reins of the telecom business being handed over to Akash Ambani, son of chairman Mukesh Ambani. Isha Ambani could be appointed as the head of Reliance's retail arm. Bernstein said Reliance's retail revenues are likely to see a 30% plus compounded growth driven by strong store additions and core retail Ebitda will be steady at 10.5%.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in