Reliance shares in focus as experts give ‘buy’ tag after Q2 results 2023
- Reliance share price is expected to witness buying interest on Monday after reporting Q2 results 2023 in synch with market expectations, believe stock market experts
Reliance shares: After announcement of Q2FY24 results on Friday evening, Indian stock market is expected to react to its quarterly numbers during Monday deals. According to stock market experts, Reliance Industries Q2 results for the financial year 2023-24 has come on the expected lines and hence some upside can be expected in Reliance share price on Monday.
Stock market experts said that RIL has reported growth in all business segment and hence some buying interest in the stock is expected. They expected Reliance shares to touch ₹2,300 to ₹2,350 apiece levels in near term whereas its support placed at ₹2,210 per share levels may remain strong bounce back zone for the Sensex heavy weight.
Decoding Reliance Q2FY24 results
Speaking on Reliance Q2FY24 results, Swarnendu Bhushan, Co Head of Research at Prabhudas Lilladher said, "RIL reported Q2 results with standalone EBITDA & PAT of ₹191.9 bn (10%Q/Q; PLe: ₹222.5bn) and ₹112.1bn (16%Q/Q; PLe: ₹141.9bn) ." Prabhudas Lilladher said that company's gas EBIDTA was at ₹48 billion, which is 18 per cent higher against its gas EBIDTA in Q1FY24."
Sabri Hazarika, Senior Research Analyst at Emkay Global Financial Services said, “RIL reported largely in-line earnings in Q2FY24, driven by a beat on our Retail and O2C estimates, while Upstream saw a miss due to MJ1 commissioning costs. Jio remained consistent with better than expected net subscriber additions. Net debt fell 7% QoQ to Rs1.18trn, led by Retail fund-raise and strong OCF. Mgmt. highlighted that capex intensity is expected to decline by FY24-end, on completion of 5G network roll-out. Q2FY24 capex—attributable to 5G rollout and building of the retail eco-system—stood at Rs388bn, down 2% QoQ. We keep FY24-26E earnings largely unchanged.”
Asked about Reliance results for the second quarter of current financial year, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "RIL results are in sycn with market expectations and rise in Gas EBIDTA has done the trick for oil major. In fact, most of the oil producing companies have reported better quarterly numbers due to margin benefit on their buffer stock after the recent rise in crude oil prices. But, further rise may not be good for RIL and other oil making companies. So, we need to remain vigilant about the Israel-Hamas war."
Reliance share price outlook
Expecting bounce in Reliance shares after Q2 results 2023, Sumeet Bagadia, Executive Director at Choice Broking said, "Reliance share price may touch ₹2,300 and ₹2,350 apiece levels. So, those who have Reliance shares in their portfolio, can hold the scrip with trailing stop loss at ₹2,210 for near term target of ₹2,350 levels."
Choice Broking expert went on to add that on breaching ₹2,350 target on closing basis, Reliance share price may go up to ₹2,500 levels in quick time.
Advising long term investors to buy Reliance shares, Sabri Hazarika of Emkay Global said, “We retain our BUY on RIL on the back of steady earnings outlook and peaking-out of current capex cycle which should entail FCF generation and debt reduction. Valuations are attractive and we maintain Sep-24E Target Price at ₹2,730 per share.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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