After rallying more than 5% on April 28, shares of the company traded 3% higher at Rs 1,410 on April 29
Energy-to-telecom behemoth Reliance Industries (RIL) extended its gains on Dalal Street for the second straight session on Tuesday. The company on Friday, post-market hours, reported 2.40% year-on-year growth in consolidated net profit at Rs 19,407 crore for the quarter ended March 2025. On the other hand, total income advanced 9.88% YoY to Rs 2.69 lakh crore. Analysts hold a bullish view on RIL post better-than-expected financial results.
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After rallying more than 5% on April 28, shares of the company traded 3% higher at Rs 1,410 on April 29. As a result, market capitalisation of RIL surged by 1.41 lakh crore to Rs 19 lakh crore at around 1.30 pm (IST) on Tuesday from Rs 17.59 lakh crore on April 25. On the other hand, the benchmark BSE Sensex was up 177 points, or 0.22%, at 80,395. BNP Paribas Securities India is bullish on RIL with a target price of Rs 1,685, indicating an upside of nearly 20% from the current market price.
“RIL’s Q4FY25 operating profit was in line with our estimates. Its consumer business (Jio and retail) reported strong results while its largest division (O2C) continued to face headwinds due to lower refining margins and increased capacities. FY25 has been a year of consolidation for RIL with low single-digit growth in operating profit and earnings but we expect a recovery in FY26. We see the continued ramp-up of its consumer ventures (telecom, retail, media) and commissioning of its new energy projects as the growth drivers for RIL while the O2C outlook remains uncertain.”
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Consolidated EBITDA grew 3.6% YoY to Rs 48,737 crore in Q4FY25, all thanks to strong profits from the consumer businesses offsetting weakness in O2C and upstream. Meanwhile, RIL also became the first Indian company to cross total equity of more than Rs 10 lakh crore.
Systematix Institutional Equities set a target price of Rs 1,541 for RIL post Q4 results. “We believe further re-rating is imminent as RIL commissioned 1GW of solar panels in Q4FY25. Also, 10GW complete solar value chain capacity can be expanded gradually. Retail business has seen a strong growth across chain while online sales have grown significantly in recent quarters. Further, expectations of another round of tariff hike in H2FY26 and deeper penetration of FTTH would lead to higher ARPU, and upcoming listing of retail and Jio telecom business would further unlock value.”
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Net debt of RIL stood almost stable at Rs 1.17 lakh crore in FY25 against Rs 1.16 lakh crore in FY24, while capex also remained the same at Rs 1.31 lakh crore. YES Securities in a report said, “RIL reported a strong Q4FY25.” While maintaining a target price of Rs 1,550, the brokerage added that RIL’s capex over FY26 is expected to remain high due to investments in expansions and new energy projects.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Apr 29, 2025 3:10 PM IST
