MUMBAI: Reliance industries limited (RIL) shares hit a peak of up to 4% in opening trade on the back of a stronger Q4 financial result for the fiscal year 2024-25 as announced by the company. The group posted strong earnings surprise, which brightened investor sentiment and saw several broking houses reiterating bullish views on the shares.
Conglomerate beats profit, revenue estimates
RIL posted a net profit (consolidated) of approximately ₹19407 crore for the quarter ended March 31, a whopping growth of about 2.4% y-o-y (the market expected ₹18471 crore). Revenue from operation also increased by 10 % quarter-on-quarter to ₹2.64 lakh crore which indicates an impressive business across its different categories of business. This strong showing in the final quarter helped RIL to become first Indian company with a market value over ₹10 lakh crore reinforcing its market leadership.
Key Segments Drives the growth
The good numbers clearly came from good news for RIL’s commercial businesses as the primary driver. Although market expectations were low after two successive quarters of poor performance, Reliance Retail managed to ring up a very big increase in sales and also profitability whereas Jio Platforms displayed subscriber growth momentum and ARPU saw an upswing. These segments counteracted a more muted performance from the traditional Oil-to-Chemicals (O2C) business.
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Reiterate Positive Brokerages on RIL
With a strong debut, the same brokerage houses such as Nuvama, Motilal Oswal and CLSA have continued to affirm their positive broker opinion on the stock of RIL; some with higher target prices at ₹1,708 — from where higher is yet to come. They maintained Reliance consumer boom and areas like New Energy for Future growth as key drivers of their optimism by upgrading their ratings to either ‘Buy’ or ‘Outperform’. The market reacted presented that very positive sentiment very clearly.
Brokerages are very bullish on RIL’s next leg of growth (excuse the pun) anchored in the ramping up of its new energy business and also the possible deleveraging mechanics in the system. This strong execution of the company’s strategic initiatives and across major sectors, will be expected to sustain its long term top view on TITAN besides posting shareholder value, more or less again.
