NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Reliance Industries Ltd. has delivered second successive quarter of muted earnings, with 5/5% YoY decline in Ebitda/profit after tax (+1/9% QoQ). Weak oil-to-chemicals (-24/-5% YoY/QoQ dip in segment Ebitda) and muted retail (segment Ebitda up only 1/3% YoY/QoQ) segments drove this weakness.
Capex of Rs 340 billion was up Rs 52 billion QoQ, driven by New energy/oil-to-chemical capex, increasing net debt to Rs 1,164 billion (up Rs 41 billion QoQ).
New Energy segment and strong RJio prospects are positives, but we remain cautious on free cash flow yields/return ratios and rich valuations.
Despite EPS downgrade of 5-7% for FY25-27E, target price rises marginally to Rs 2,980/share, driven by upgrades to telecom valuations. Additionally, the 14% dip in stock price (over last three months) implies ~9% upside, driving an upgrade to Add.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
