NEW DELHI: Shares of Reliance Industries Ltd (RIL) nose-dived 4% on Monday after the company’s fourth-quarter profit missed street estimate. The company released its Q4FY22 on Friday.
The stock fell even as major brokerages remains bullish on the company’s future prospects with Morgan Stanley saying RIL is likely to clock $20 bn EBITDA by end 2022.
RIL shares plummeted by 3.97% on Monday to close at 2,517.15 on the BSE. During the past five sessions, it has declined by 9%, which is greater than fall seen in benchmark indices Sensex and Nifty during the same time period.
The company on Friday reported a 22.50% year-on-year (YoY) increase in consolidated net profit at Rs 16,203 crore (attributable to the owners of the company) compared to Rs 13,227 crore in the same quarter last year.
Profit after tax (PAT) for in the quarter was not only below analysts’ expectations but also lower than net profit of Rs 18,549 crore the firm had reported in the December ended quarter.
While the company’s bread and butter oil to chemical (O2C) business performed well, its retail business had a rather disappointing quarter.
Nevertheless, domestic and global brokerages see a major upsurge in the shares of India’s most valuable company as gepolitical tensions is expected to give a big boost to its core refining business.
“A refining Golden Age, tightening global gas markets, and improving telecom subscriber quality point to a $20bn+ EBITDA run rate by end-2022. With progress in new energyinvestments, a $50bn market cap uplift appears ahead as EBITDA trends pose upside risks,” said Morgan Stanley in a note while the stock a price target of Rs 3,253.