RIL Q4 results: Brokerages make big moves on stock but should you buy?

RIL Q4 indicated a stellar performance across the board and this has made brokerages raise its target price.

Reliance Industries (RIL) announced its 4th quarterly results yesterday with its gross revenue rising by 10.8 per cent year-on-year (YoY) to ₹2,64,834 crore, but profit after tax (PAT) stayed virtually flat at ₹21,243 crore versus the same quarter last year, which was ₹21,327 crore. However, EBITDA went up 14.3 per cent YoY to ₹47,150 crore. Notably, performances have been good for all the group’s businesses including oil and gas, retail and telecom. How has it all been interpreted by market-watchers? Check out what these brokerages recommend investors should do now:

RIL Q4 results have had a positive impact on brokerages. Know what they recommend now. (Bloomberg)

For starters, almost all brokerages have maintained their positive ratings, while some have even raised RIL’s stock target price on the back of the belief that the gargantuan corporate is done with its capital expenditure cycle.

Motilal Oswal Financial Services has revealed that it has retained its buy rating with a target price of ₹3245. The reasons it provided for the rating include Q4FY24 EBITDA and PAT being above estimates.

LiveMint quoted it as saying, “Using our SoTP approach, we value the refining and petrochemical segment at eight times FY26E EV/EBITDA to arrive at a per share valuation of ₹1,029 for the standalone business. We ascribe an equity valuation of ₹810 per share to RJio and ₹1,593 per share to Reliance Retail as well as ₹37 per share towards the new energy business.”

Morgan Stanley has an overweight call on RIL stock and a target price of ₹3,046 on the stock. "See multiple catalysts for re-rating across verticals as the company exits fourth investment cycle," it was quoted as saying by CNBC-TV18.

Nuvama Wealth Management actually boosted RIL target price. The brokerage increased it by as much as 10 per cent to ₹3,500. The recommendation is 'buy'. It has cited the consumer business (digital and retail) set to contribute nearly 50 per cent to EBITDA from FY2025. It explained, “We are now ascribing a rich valuation to Jio and Reliance Retail seeing their huge potential while remaining positive on the core O2C business (both refining and chemicals).”

Kotak Institutional Equities has announced an 'add' call and a revised fair value of ₹3,200, up 10 per cent from ₹2,900 earlier. It explained, “We marginally lower FY2025-26E EBITDA by nearly 1-2 per cent on lower subscriber additions in RJio after Vodafone Idea’s fundraising.”

Emkay Global Financial Services has retained its 'add' call with a target price of ₹3,200 saying that it is positive about Jio tariff hikes.