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The brokerage has an “overweight” rating on the stock with a price target of ₹1,606 per share.
It said valuations of Reliance Industries and prospects of its earnings recovery ensure that it remains the brokerage’s top pick.
The brokerage said the company’s earnings witnessed multiple legs of recovery since the last quarter after nine months of challenges.
Reliance Industries has witnessed more evidence of recovery at refining, certain chains of chemicals, this year, so far, Morgan Stanley said, adding that Asian Chemical multiples are also rebounding from their recent lows.
Last week, the stock received two major upgrades within two days. First, brokerage firm Kotak Institutional Equities upgraded its rating on Reliance Industries to “buy” from “add” and set a price target of ₹1,400 apiece. A day later, Macquarie upgraded its rating on the stock to “outperform” from “neutral” and increased its target price to ₹1,500 from ₹1,300 apiece.
Of the 38 analysts that have coverage on the stock, 35 have a “buy” rating and three have a “sell” rating.
In the December quarter, RIL’s consolidated net profit gained 7.38% to ₹18,540 crore from the previous year’s ₹17,265 crore. Its consolidated revenue also increased 6.79% to ₹2,43,865 crore against last year’s ₹2,27,970 crore.
The company’s consolidated EBITDA stood at ₹48,003 crore, up 7.8% from ₹44,525 crore in the December quarter in the previous year. RIL’s EBITDA margin expanded to 18% from 17% in the September quarter and from 17.9% in the December quarter last fiscal.
Reliance Industries shares ended the previous session 3.04% higher at ₹1,246.4 apiece. It was up 0.16% at ₹1,251.85 apiece at 9.20 am on Monday, March 10. It has declined 14.37% in the last six months. The stock has declined 14.72% in the last six months.
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First Published: Mar 10, 2025 9:24 AM IST
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