Reliance Industries hits fresh 52-week high post Q4 results

The stock was up 3.5% to Rs 1,465, also its fresh 52-week high on BSE in early morning trade

Reliance Industries (RIL) was up 3.5% to Rs 1,465, also its fresh 52-week high on BSE in early morning trade, after the company reported 12.3% year on year (Y-o-Y) growth in consolidated net profit at Rs 8,046 crore for the fourth quarter ended March 2017 (Q4FY17). The company’s turnover in the March quarter rose 45.2 % Y-o-Y to Rs 92,889 crore.

The company’s gross refining margins (GRMs) for the quarter were at $11.5 per barrel, against $10.8 per barrel reported in the December quarter. Analysts were expecting GRMs of $10-10.5 in the March quarter.

RIL generated its highest ever annual profits at Rs 29,901 crore, registering a growth of 18.8% on Y-o-Y basis.

“Refining and petrochemicals businesses achieved record levels of profitability, underpinned by our ability to access feedstock competitively from global markets, maintain high operating rates and place products in growth markets. With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth,” RIL said in a press release.

Antique Stock Broking raise target price (TP) of the stock to Rs 1,435 (from Rs 1,275), but downgrade RIL to a Hold (from Buy).

“The increase in TP is led by a higher DCF valuation of Rs 278/share for R-JIO (From Rs 158/share), as subscriber addition has been much ahead of our expectation, shortening the breakeven time line for telecom venture,” the brokerage firm said in Q4FY17 result preview.

“Having said we remain concerned over de-growth of telecom industry/ARPU as competitive intensity rises post JIO's disruptive entry. Also, while market is factoring the optimistic upside from JIO into RIL's market capitalisation, it is largely ignoring the near term earnings stress due to ongoing (and likely to continue) customer acquisition programs”, added report.

At 10:23 am; the stock was up 1.9% at Rs 1,443 on BSE as compared to 0.49% rise in the S&P BSE Sensex. A combined 4.53 million shares changed hands on the counter on BSE and NSE so far.