Reliance Industries reported a 4% sequential increase in revenue to Rs 2.39 lakh crore for the quarter ending December 31, 2024, with net profit rising 12% sequentially. The company's retail sales rebounded, and Jio Infocomm saw net subscriber additions, bolstering earnings growth visibility. Despite a 3.62% decline over the past year, RIL's stock rose 0.72% to Rs 1,282.9 on the NSE, outperforming the Nifty 50's 0.28% advance. The stock's relative strength index stood at 55, with 35 out of 39 analysts recommending a 'buy.' The average 12-month analyst price target suggests a 20% potential upside.
Key takeaways:
- Morgan Stanley retained an 'overweight' rating on Reliance Industries but lowered the target price to Rs 1,606 from Rs 1,662.
- Reliance Industries' Q3 FY25 consolidated Ebitda increased by 12% QoQ and 8% YoY, surpassing brokerage estimates by 4%.
- The company is focusing on new energy and AI infrastructure, which Morgan Stanley believes is underappreciated and will drive future earnings.
- Reliance Industries' stock has declined 3.62% over the last 12 months, but analysts see a potential upside of 20% based on 12-month price targets.