Shares of market heavyweight Reliance Industries (RIL) slipped over 2 per cent within the early morning offers on Monday regardless of the corporate reporting a pointy 46 per cent rise in consolidated web revenue at Rs 15,479 crore for the September quarter (Q2) of the monetary 12 months 2021-22 (FY22).
The inventory of the oil-to-telecom behemoth fell as a lot as 2.17 per cent to Rs 2,570.10 apice on the BSE whereas on the National Stock Exchange (NSE), it fell 2.18 per cent to Rs 2,570.00 per share.
However, the inventory partly recovered from its early lows and was down practically 0.5 per cent in late morning offers. At 11:24 am, it was buying and selling at Rs 2,622.55, down 0.17 per cent on the BSE whereas on NSE, it was at Rs 2,622.75, down 0.18 per cent.
Over 45.80 lakh shares had been traded on NSE whereas practically 2.80 lakh shares exchanged palms on the BSE, information from the respective inventory exchanges confirmed.
After the market hours on Friday, RIL had introduced a 46 per cent rise in consolidated web revenue at Rs 15,479 crore for the Q2 of FY22 as towards Rs 10,602 crore in the identical interval of final 12 months. The firm’s gross income for the interval was Rs 1,91,532 crore, 49.2 per cent above Rs 1,28,385 crore a 12 months in the past.
Jio Platforms posted a 23.5 per cent rise in web revenue at Rs 3,728 crore for the quarter. Jio’s gross income for the quarter was Rs 23,222 crore, increased by 15.2 per cent. Reliance Retail achieved a gross income of Rs 45,426 crore for the second quarter, a development of 10.5 per cent year-on-year and better than pre-Covid interval. Its web revenue for the quarter was Rs 1,695 crore, 74.2 per cent increased.
“All our businesses reflect growth over pre-Covid levels. Our operational and financial performance reflects sharp recovery in the retail segment and sustained growth in oil-to-chemicals (O2C) and digital services business. Our O2C business benefited from sharp recovery in demand across products and higher transportation fuel margins,” stated RIL Chairman & MD Mukesh Ambani.
Motilal Oswal Institutional Equities in its Morning India report gave a “Buy” score to the inventory at a value of Rs 2,627 and a goal value of Rs 2,900.
“Using SoTP, we value the Refining and Petrochemical segment at 7.5x FY24E EV/EBITDA to arrive at a valuation of Rs 775/share for the standalone entity. We ascribe an equity valuation of Rs 880/share to RJio and Rs 1,200/share to Reliance Retail, factoring in the recent stake sale. Our higher EV/EBITDA multiple of 33x/19x for Retail/Digital Services underscores new growth opportunities in the Digital space, along with the rationalization of tariffs in RJio. We reiterate our Buy rating with a TP of Rs 2,900/share,” the brokerage report stated.
