RIL share price: Snapping a three-day losing spree, RIL share price surged on Wednesday morning, after falling global crude oil prices lifted sentiments for the prospects of oil-telecom conglomerate.
RIL share price: Snapping a three-day losing spree, RIL share price surged on Wednesday morning, after falling global crude oil prices lifted sentiments for the prospects of oil-telecom conglomerate. Reliance Industries share price gained as much as 2% to Rs 1075.95 in the morning trade, even as crude oil prices fell to a near two-month low. RIL shares have been on a falling spree after the Mukesh Ambani-led firm reported Q2 results below market expectations.
The fall started last week, as RIL share price plunged nearly 7% intra-day, and closed at Rs 1,100.30. On Monday, the shares plunged by more than 3.3% to close at Rs 1,063.20. Yesterday too, the shares closed in the red and fell to Rs 1,054.7 on close. Interestingly, RIL shares are trading 20% below their 52-week highs. On Wednesday last week, Reliance Industries had reported a 17% on-year rise in net profit to Rs 9,516 crore, lower than street expectations. In the same quarter last year, RIL had reported an 18% on-year rise in net profit to Rs 9,459 crore. Revenue of the company also increased by 54.5% to Rs 1,56,291 crore ($ 21.6 billion) in the latest quarter.
After the latest quarterly results, many brokerages had raised the target share price on RIL. Global firm Credit Suisse has maintained an ‘Outperform’ rating on the shares with a target share price of Rs 1,320, implying an upside of 22% from the current market prices. “Refining surprised negatively, while petrochemicals business continues to be strong. Consumer businesses continue to scale well; and acquisitions will accelerate broadband ambitions,” Credit Suisse noted in its report.
According to Deutsche Bank, the ramp-up of monetisation at Reliance Jio in mobility as well as fixed broadband should sustain the outperformance over the next six months. Deutsche Bank has a target share price of Rs 1,270 on the shares. Taking stock of the reported results, Deutsche Bank said that Petchem and telecom were the major drivers of robust growth in the second quarter. According to the firm, commissioning of petcoke gasifiers will lead to an improvement in refining margins from the financial year ending March 2020.