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Business News/ Markets / Stock Markets/  Elara Securities raises target price of Reliance Industries post Q3 results; buy or sell?
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Elara Securities raises target price of Reliance Industries post Q3 results; buy or sell?

Reliance Industries’ EBITDA grew 16% year-on-year (YoY) to ₹407 billion in Q3FY24 versus its estimates of ₹381 billion.

Reliance Industries. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380DPremium
Reliance Industries. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380D

Brokerage firm Elara Securities has increased the target price of Mukesh Ambani-led Reliance Industries to 3,354, while retaining the ‘buy’ tag on the stock after conglomerate reported its third quarter results for FY24 last week.

“We reiterate Buy with a higher TP of 3,354 from 3,194. We assume 22.8x (unchanged) FY26E EV/EBITDA for Retail, 18.0x (unchanged) for Digital Services and 6.5x (from 6.0x) for O2C," Elara Securities said in its report.

Also read: Reliance Retail Q3FY24 results: Net profit rises 32% YoY to 3,165 crore, revenue up 24% YoY

Reliance Industries’ EBITDA grew 16% year-on-year (YoY) to 407 billion in Q3FY24 versus its estimates of 381 billion. The conglomerate further reported a 11% YoY rise in PAT to 196 billion as compared to estimated figure of 175 billion.

The company reported revenue from operations at 74,373 crore, marking a 23.8% YoY growth compared to Q3 FY23's revenue of 60,096 crore, driven by strong performance in the Grocery, Fashion, Lifestyle, and Consumer Electronics segments.

“Reliance Retail has delivered a strong performance during the festive quarter. Our business success is intricately woven into the larger fabric of India's economic growth, and together, we are shaping a compelling story of innovation and world-class possibilities for the future. We remain resolute in our commitment to bring high-quality products at great value to our customers with an engaging shopping experience," said Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited.

Also read: Reliance Q3 Results Highlights: Jio, Retail shine; O2C revenue declines; 5 key highlights from RIL Q3 earnings

It posted a 32% YoY increase in its consolidated net profit at 3,165 crore in Q3FY24. In the same period last year, the company posted a net profit of 2,400.

“ We up FY25E/26E EPS 4%/5% on better refining outlook due to limited refining supply addition versus demand growth," the brokerage firm said.

Positive earnings surprise was led by 50% YoY growth in EBITDA from oil & gas production at 58 billion (led by ramp-up in KG gas production), a 30% YoY rise in retail EBITDA to 63 billion.

 

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Published: 22 Jan 2024, 07:09 PM IST
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