By Aditya Raghunath
Investing.com — Reliance Industries Ltd (NS:) reported its numbers for Q1 FY22 over the weekend, and it posted a 7.25% fall in its profit for the quarter. The stock has fallen over 2% since then and is trading at Rs 2,065.25 as of this report.
Brokerages are divided on the stock. Motilal Oswal (NS:) has a buy on the stock with a target of Rs 2,485. It said, “Using SoTP, we value the O2C business at 7.5x FY23E EV/EBITDA, arriving at a valuation of INR776/share for the standalone business, and assign INR68 for its E&P assets. We ascribe an equity valuation of a) INR875/share to RJio at 20x FY23E EV/EBITDA and b) INR771/share to Reliance Retail at 34x FY23E EV/EBITDA, factoring in the recent stake sale.”
ICICI Securities has a hold rating on the stock with a target of Rs 2,017. “Stock underperformance continues and will continue unless there is a tariff hike, retail growth is back to pre-covid levels, or GRM recovers,” it said.
Credit Suisse (SIX:) has a neutral rating on the stock with a target price of Rs 2,020 while Macquarie has an underperform rating on the stock with a target price of Rs 1,350. HSBC has a hold rating with a target price of Rs 2,050. It said that investors should wait for a meaningful uptick in business before taking a call on the stock.