Analysts retain ratings and price targets on RIL

Mumbai: Shares of (RIL) declined 0.6% to close at ₹2,428 on Monday as analysts mostly maintained their ratings and price targets after the December quarter results. The changes in price targets were marginal.

After the third quarter results, 29 analysts had a ‘buy’ rating on the stocks, four had a ‘Hold’ and three had a ‘Sell’ rating. Analysts’ average 12-month price target on the stock compiled by Bloomberg is ₹2,874, implying an upside of 18.4% from Monday’s closing.

, which has set a price target of ₹2,802 on the stock, sees limited upside from the current levels.

“We remain sceptical of any meaningful expansion in return ratios and/or any major move to return cash to shareholders in view of the sustained capex momentum over FY22-FY24E,” said the brokerage.

Reliance shares have gained 2.1% in the past year as against the 5.7% upside in the Nifty.

Morgan Stanley said the company’s third quarter earnings pointed to an acceleration in the investment cycle.

“We believe the key investor debate is shifting to RIL’s capital efficiency, debt and returns outlook for this fourth investment cycle, which we estimate will peak near 2026,” said the investment bank, which did not disclose its price target and rating in the client note.



Source link

Leave a comment