Mumbai: Shares of Reliance Industries<\/a> could advance by as much as 4 per cent on Monday as the oil-to-telecom conglomerate’s 26 per cent growth in third quarter net profit from a year earlier has beat analysts<\/a>’ estimates. But, any weakness in the market<\/a> could put a lid on gains in the stock price, said analysts.
“Reliance is likely to move up 3-4 per cent and can set the Nifty<\/a> back towards 12,600,” said Sanjiv Bhasin, director, IIFL Securities. “Reliance has clearly surprised on the Jio front. There was pessimism about Jio and that has now been cleared. Before Budget Reliance can see at least a 5 per cent upside,” said Bhasin.
Net profit rose to Rs 14,894 crore for the three months ended December from Rs 11,841 crore in the same period a year ago. Shares of RIL ended down 2.3 per cent at Rs 2,049.65 on Friday but it had gained over 8 per cent in the preceding four sessions in anticipation of a strong quarterly result.
Mumbai: Shares of Reliance Industries<\/a> could advance by as much as 4 per cent on Monday as the oil-to-telecom conglomerate’s 26 per cent growth in third quarter net profit from a year earlier has beat analysts<\/a>’ estimates. But, any weakness in the market<\/a> could put a lid on gains in the stock price, said analysts.
“Reliance is likely to move up 3-4 per cent and can set the Nifty<\/a> back towards 12,600,” said Sanjiv Bhasin, director, IIFL Securities. “Reliance has clearly surprised on the Jio front. There was pessimism about Jio and that has now been cleared. Before Budget Reliance can see at least a 5 per cent upside,” said Bhasin.
Net profit rose to Rs 14,894 crore for the three months ended December from Rs 11,841 crore in the same period a year ago. Shares of RIL ended down 2.3 per cent at Rs 2,049.65 on Friday but it had gained over 8 per cent in the preceding four sessions in anticipation of a strong quarterly result.
“Overall the results are positive except for the retail vertical. All other verticals have performed well. This is not a major surprise however,” said Independent market expert Ambareesh Baliga. “Looking at the weakness in the market, I don’t think it can shoot up from here. It may see a 1-2 per cent upside. In the run-up to the earnings<\/a>, it has moved up.”
Following the result, Prabhudas Lilladher has maintained buy rating on RIL with a target price of Rs 2,232. BOB Capital Markets maintained reduce rating saying that outlook for oil-to-chemicals remains cloudy. Macquarie has maintained underperform with a target price of Rs 1,350. “With RIL’s shares today trading near our fundamental blue-sky valuation, we continue to flag a significant negative risk-reward skew in the face of potential execution challenges,” said Macquarie.
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