Reliance Industries Ltd. (RIL) has been in the spotlight following its recent quarterly results announced on October 14, 2024. The company reported a mixed performance, leading to fluctuations in its stock price. As of October 15, 2024, RIL shares traded at approximately ₹2,745, reflecting a correction of about 15% from its recent peak of ₹3,217.
Main Points
Current Update (October 15, 2024)
On October 15, RIL’s shares experienced a slight decline of nearly 1% as investors reacted to the company’s second-quarter results. The consolidated net profit fell by 4.8% year-on-year to ₹16,563 crore, primarily due to challenges in the oil-to-chemicals (O2C) sector, which saw a 23% drop in operating profit. Revenue growth was flat at ₹2.4 lakh crore, with the consumer business showing signs of weakness.
Price Performance and Expectations
The stock has faced downward pressure following two consecutive quarters of soft results. Analysts have revised their price targets based on these developments:
- HDFC Institutional Equities maintains a target price of ₹3,350.
- Nuvama suggests a target of ₹3,650, citing potential growth in new energy initiatives.
- Other brokerages like Antique Stock Broking and CLSA have adjusted their targets downwards to ₹2,846 and ₹3,300, respectively.
Key Levels and Technical Analysis
For traders and investors looking at technical levels:
- Support Level: ₹2,700
- Resistance Level: ₹2,800
These levels are critical for short-term trading strategies as they indicate potential reversal points in the stock’s movement.
Important News and Developments
- Quarterly Performance: RIL’s digital services arm, Jio Platforms, reported a robust performance with a 7% year-on-year increase in Average Revenue Per User (ARPU). This was bolstered by recent tariff hikes.
- New Energy Initiatives: The company is on track to launch its first new energy giga-factory for solar PV modules by the end of this year. This initiative is expected to drive future growth and is seen as a significant pivot towards renewable energy sources.
- Market Sentiment: Despite the recent correction in share prices, many analysts maintain a positive long-term outlook for RIL due to its diversified business model and ongoing projects in digital services and new energy sectors.
Analyst Recommendations
Out of the 37 analysts covering Reliance Industries:
- 28 analysts recommend “buy”
- 6 suggest “hold”
- 3 advise “sell”
This consensus indicates a generally optimistic view of the stock’s potential for recovery and growth in the coming months.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
