Shares of the oil-to-telecom conglomerate advanced for the second day in a row on Monday to settle at ₹2,360.5 apiece on the NSE, up 0.5% from the previous close.
Consensus price targets of analysts fell to ₹2,820.3 per share, down 0.65% from the previous close after the fourth quarter results, Bloomberg data showed.
Analysts at Kotak Institutional Equities, Motilal Oswal, and ICICI Securities cut their price targets.
“Return ratios and FCF remain subdued, and therefore, we have revised down earnings to factor in higher depreciation/interest costs and marginally lower OTC metrics,” said ICICI Securities in a note to clients.
Of the 28 analysts who reviewed RIL’s Q4 earnings, 21 of them have a ‘buy’ or ‘outperform’ rating while six of them remain ‘neutral’ and one has a ‘sell’ rating.
Motilal Oswal expects RIL’s retail business to witness some traction from Future Group’s footprint after seeing its retail growth moderate. On the other hand, the brokerage expects the telecom to soften with higher base and lower tariff hike probability along with intensifying 5G spends.”While upstream production is expected to increase to 30 mmscmd in FY24 from 19 mmscmd, concerns remain on refining and petrochem margins going forward,” Motilal Oswal told its clients in a note.
Meanwhile, Jefferies and Goldman Sachs raised their respective price targets and see more than 20% upside potential from the current levels.
“RIL’s ebitda was led by O2C and Jio, while Retail was a tad lower… Jio generated healthy FCF with elevated 5G capex possibly opening the next leg of growth,” said Jefferies.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
