Maximizing Your Profits: Trading Strategies for RIL Shares After Strong Q4 Results

Following Reliance Industries (RIL) impressive earnings report for the quarter ending March 31, 2023, which surpassed market expectations, several leading brokerages maintained their optimistic outlook on the company’s stock.

JP Morgan retained an “Overweight” rating, while Jefferies recommended a “Buy” rating. Domestic brokerages Motilal Oswal, Prabhudas Lilladher, and Sharekhan also expressed confidence in RIL, all rating it a “Buy.”

Reliance Industries Limited (RIL), one of India’s largest conglomerates, reported a robust 19% YoY increase in its consolidated net profit for the latest reporting quarter, reaching Rs 19,299 crore. This figure was significantly higher than the 4% growth predicted by analysts. However, the consolidated revenue for RIL grew only 2% YoY, reaching Rs 2.16 lakh crore, slightly lower than the anticipated Rs 2.22 lakh crore. The increase in net profit can be attributed to higher other income and lower taxes.

Despite RIL’s impressive financial performance, the stock had a sluggish start on Monday, trading at Rs 2,353.10 on the NSE and rising by only Rs 4.10 or 0.17% from the Friday closing price. Nonetheless, several brokerage firms have recommended a buy rating on the stock, citing the O2C and Jio businesses as driving factors behind RIL’s better-than-expected net profit.

JP Morgan, which has an overweight rating on RIL, has set a price target of Rs 2,960, as it believes the risk-to-reward ratio is now attractive. Jefferies has also recommended a buy rating with a target price of Rs 3,125, citing healthy free cash flow and favorable valuation. Motilal Oswal has reiterated its buy rating and set a target price of Rs 2,800, while Sharekhan has recommended a buy rating on the stock, citing strong Q4FY23 performance.

Kotak Institutional Securities has revised its target price to Rs 2,800 and reiterated its buy rating, citing lower GRM offset by stronger petchem spreads, while HDFC Securities recommends an add rating on the stock with a target price of Rs 2,637, premising on the recovery in the O2C businesses and EBITDA growth in the digital business.

Overall, RIL’s impressive financial performance, coupled with positive ratings from brokerage firms, indicate that the stock may offer significant growth potential for investors.

some key points that can be derived from the information

Brokerage FirmRatingTarget Price (Rs)Comments
JP MorganOverweight2,960Risk-to-reward ratio appears attractive, O2C drove better-than-expected net profit
JefferiesBuy3,125Beat street’s expectations on O2C and Jio, favourable valuation
Motilal OswalBuy2,800Strong standalone numbers, steady consumer business
Prabhudas LilladherBuy2,834Reiterated Buy rating
SharekhanBuyStrong Q4FY23 performance, RIL is top pick
Kotak Institutional SecuritiesBuy2,800Revised target of Rs 2,800, largely unchanged earnings estimates
HDFC SecuritiesAdd2,637Recovery in O2C and EBITDA growth in digital business, potential for further value unlocking
summarizing the information

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