Reliance Industries shares slump 3% after GRM fall; should you buy or sell stock?
.jpg)
Shares of billionaire Mukesh Ambani-led Reliance Industries slumped in trade on Monday morning, after the firm’s GRMs came in at the lowest level since Q3FY15. Reliance Industries shares slumped nearly 3% to hit the day’s low at Rs 1,345.30 on BSE. Notably, the firm has reported a drop in standalone net profit for the first time in 17 quarters. Reliance Industries reported a total net profit of Rs 10,362 crore for the January-March quarter, a jump of 9.79% compared to the same period last year, becoming the first ever firm to report above Rs 10,000 crore profit in two consecutive quarters. For the full fiscal year, RIL reported a 13.1% rise in net profit to Rs 39,588 crore.
The oil-telecom conglomerate’s gross refining margin — a key metric of its profitability from turning crude oil into petroleum products — fell slightly in the quarter to $8.2 per barrel from $8.8 per barrel in the previous quarter. Taking stock of the results, Kotak Institutional Equities has revised FY20-21 EPS estimates to Rs 75 (down 2%) and Rs 87 respectively ( up 1%). The brokerage firm said that it factors in lower subscribers/ ARPU for Reliance Jio, and a higher retail contribution. Kotak Institotional Equities has a sell rating on the stock with a target stock price of Rs 1,100. The firm is concerned about persisting high capex and rising leverage.
Morgan Stanley said that the Q4 results represents is 7% higher than its estimate, but with a slight miss on EBITDA. The refining margin is slightly better, but telecom ARPU is lower than expected. Improved utilisation will drive earnings growth of 18% into FY20. The firm’s asset monetisation will help to transfer $8.7 billion of liabilities to InvIT. The firm has an overweight call on the shares with a target price of Rs 1,230.
According to CLSA, a $15 billion cut in liabilities in liabilities and capex intensity may have peaked. The lease payments for demerged assets drives a 3-8% cut in EPS estimates. CLSA has maintained a buy call on the shares with a target price of Rs 1,665.
Other Latest News
.webp)
Shiv Sena (UBT) chief Uddhav Thackeray on Wednesday hit out the BJP, saying that by inducting former Congress leader Ashok Chavan, the ruling party has also become a part of the multi-crore Adarsh Housing Society scam now. Earlier, the BJP used to target Chavan saying the families of martyrs were fooled in the Adarsh scam, but now the same party is involved in fooling them, he alleged.
Thackeray was addressing a press conference at Nanded in Maharashtra, where he arrived to campaign for the Maha Vikas Aghadi (MVA) candidate Vasant Chavan from the Nanded Lok Sabha constituency.
.webp)
Jamie Dimon, the chief executive of US banking giant JPMorgan Chase, has praised Prime Minister Narendra Modi and berated the “liberal press” for criticising him.
Dimon, in a webinar hosted by The Economic Club of New York, praised Modi's government for alleviating poverty and implementing reforms. “Modi has done an unbelievable job in India. I know the liberal press here; they beat the hell out of him. “He has taken 400 million people out of poverty," Dimon was quoted as saying.
.webp)
The Reserve Bank of India (RBI) on Wednesday released a compiled master direction raising the minimum capital requirement for asset reconstruction companies (ARCs) to begin securitization to Rs 300 crore from Rs 100 crore as on October 11, 2022.
The central bank said that the regulation would be effective from April 24, 2024. ARCs, as on October 11, 2022, have been provided a glide path to achieve the minimum required Net Owned Fund (NOF) of Rs 300 crore.
.webp)
Reliance Jio has become the world's largest mobile operator in data traffic consumption, surpassing China Mobile. According to global analytics firm Tefficient, the Indian telecom operator's total traffic reached 40.9 exabytes in the January-March quarter, compared to China Mobile's 38.
Jio also has the second-largest 5G subscriber base globally, with 108 million users. More than 28 per cent of its total wireless data traffic is now consumed by 5G users, said the company in an analyst presentation.
.webp)
Congress leader Rahul Gandhi on Wednesday accused Prime Minister Narendra Modi of waiving off loans worth Rs 16 trillion of his billionaire friends, and said the country will never forgive him for this "crime".
In a post in Hindi on X, he said this money could have been used to cure the pain of Indians but was spent on creating hype for the ilk of those like 'Adanis'.
.webp)
.webp)
.webp)
.webp)
.webp)
