The stock price of Reliance Industries rose 2.61% as the company's revenue growth during the quarter was driven by continued growing momentum in consumer businesses. It stated that JPL's income climbed by 10.6 percent year on year, owing to a 7.5% increase in subscriber base and higher ARPU. RRVL revenue increased by 18.8%, with growing momentum throughout consumption baskets, led by food and grocery, which increased by 33%. Revenue from the Oil & Gas division increased significantly due to increasing gas and condensate production from the MJ field. Furthermore, O2C revenue fell 14% as crude oil prices fell, resulting in lower product price realization.
Reliance Industries' stock price rose 0.82% in the last five days, but fell 0.27% in the previous month, 5.29% in the previous six months, and 9.32% in the previous year.
HDFC Securities: Buy with a Target Price of Rs 2,525
"Our 'Add' rating on Reliance Industries (RIL) with a price target of Rs 2,515/sh is based on (1) O2C business recovery, (2) EBITDA growth in the digital business, driven by improved ARPU, subscriber addition, and new revenue streams, and (3) potential for further value unlocking in the digital and retail businesses." RIL's consolidated EBITDA of INR 410 billion (+32% YoY, +8% QoQ, HSIE: INR 385 billion) and APAT of Rs 17400 crore (+27% YoY, +9% QoQ) above our expectations, thanks to better-than-expected performance from its energy operations."
Prabhudas Lilladher: Buy with a Target Price: 2,618
"RIL's (RIL) consolidated revenue increased 12% year on year to Rs 2,31,900 crore (PLe: Rs 2,37,100 crore). EBITDA increased 8% year on year to Rs 40,970 crore (PLe: Rs 43,660 crore), while PAT increased 9% year on year to Rs 17,390 crore (PLe: Rs 19420 crore). Retail EBITDA increased 32% year on year, led by food and fashion/lifestyle. O2C EBITDA increased by 63% year on year, driven by excellent petrol and PVC margins, optimized feedstock sourcing, and lower SAED. ARPU was Rs 181.7, while total subscribers were 459.7 million. Currently, the stock is selling at 11.4x EV/EBITDA. We keep our 'Buy' rating and target price of Rs 2,618, based on SoTP valuing the standalone business at 7.5x FY26 EV/EBITDA, Jio at 15x FY26 EV/EBITDA, and Retail at 37x FY26 EV/EBITDA."
