Stocks

Reliance hits fresh record high on Q2 results

Reuters | Updated on January 08, 2018 Published on October 16, 2017

Shares of Reliance Industries hit fresh record high on Q2 results. The stock jumped as much as 1.8 per cent to a record high of Rs 892.

The company had posted a 7.3 per cent increase in standalone Q2 profit late on Friday, aided by higher margins from its core refining and petrochemical businesses.

Credit Suisse has raised the target price on the stock to Rs 825 from Rs 680. It has maintained “neutral” rating.

“EBITDA was above expectation on the back of strong profit from petrochemical division,” analysts at IDBI Capital say.

They have raised the target price to Rs 1,004 from Rs 875 and upgraded the stock to “buy” from “accumulate".

The company said its telecom arm Jio will turn profitable "shortly,” while adding that it would continue to pump around $1 bln into the venture for each of the next few quarters.

Jio has surprised with superior revenues as better-than-expected subscriber mix drove higher than expected core ARPU, according to Morgan Stanley.

“We see cashflow (for Jio) breakeven by FY 2020, a year earlier than expected due to better ARPU trends and lower interconnect costs,” it says.

About 22 out of 37 analysts covering the stock have a “buy” or higher rating, 11 rate it at “hold” while 4 have sell. The median target price is Rs 875, according to Thomson Reuters Eikon data.

The stock had gained about 62 per cent this year up to Friday's close.

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Published on October 16, 2017
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