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Mumbai: Most brokerages maintained a bullish view on Reliance Industries after the company on Friday posted a 15% year-on-year (YoY) fall in its second quarter profit to Rs 9,567 crore.
The company's group operations and revenue were hit by the coronavirus pandemic during the quarter. Gross Refining Margin (GRM) fell to $5.7 per barrel from $6.3 a barrel in the June quarter. However, its telecom arm Jio reported a nearly three-fold jump in net profit to Rs 2,844 crore.
JM Financial, Prabhudas Lilladher, Bank of America Securities, Antique, and Nomura have maintained buy ratings. Morgan Stanley has an overweight stance but JP Morgan is 'neutral'. Macquarie has an underperform rating and one of the lowest target prices on the Street for RIL at Rs 1,320.
CLSA said long-term prospects remain promising but it believes that near term upside is capped.
"Using valuations from recent retail deals, Jio and the proposed deal price with Saudi Aramco for the core business, as well as, adjusting for minority interest gives us an equity value close to its current market price," said CLSA, retaining outperform rating with a target price of Rs 2,250.
"Reliance has possibly exhausted its large near-term inorganic triggers while we see a low likelihood of any big surprises from its organic earnings," said CLSA.
Macquarie said the stock price implies flawless execution on RIL’s multi-pronged growth aspirations. "We remain cautious as we still see no economic moat," said Macquarie.
The company's group operations and revenue were hit by the coronavirus pandemic during the quarter. Gross Refining Margin (GRM) fell to $5.7 per barrel from $6.3 a barrel in the June quarter. However, its telecom arm Jio reported a nearly three-fold jump in net profit to Rs 2,844 crore.
JM Financial, Prabhudas Lilladher, Bank of America Securities, Antique, and Nomura have maintained buy ratings. Morgan Stanley has an overweight stance but JP Morgan is 'neutral'. Macquarie has an underperform rating and one of the lowest target prices on the Street for RIL at Rs 1,320.
CLSA said long-term prospects remain promising but it believes that near term upside is capped.
"Using valuations from recent retail deals, Jio and the proposed deal price with Saudi Aramco for the core business, as well as, adjusting for minority interest gives us an equity value close to its current market price," said CLSA, retaining outperform rating with a target price of Rs 2,250.
"Reliance has possibly exhausted its large near-term inorganic triggers while we see a low likelihood of any big surprises from its organic earnings," said CLSA.
Macquarie said the stock price implies flawless execution on RIL’s multi-pronged growth aspirations. "We remain cautious as we still see no economic moat," said Macquarie.
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