Shares of Reliance Industries (RIL) fell over 2 per cent in intraday trade on Thursday after global brokerage firm Macquarie downgraded the stock to 'underperform' from 'neutral', saying most of the positives are already priced in. The rating agency has maintained the target price of Rs 1,300 as it believes several bullish factors have already been factored in.
The brokerage said investors should stay long on Reliance Industries if they want 'growth at any price'. In case an investor expects 'growth at reasonable price', then one should book profit, it added.
On Thursday, RIL share price declined as much as 2.60 per cent to touch an intraday low of Rs 1441.20 apiece on the BSE after opening higher at Rs 1483.95 against previous close level of Rs 1479.70. Meanwhile, the BSE Sensex was trading 290 points, or 0.70 per cent, lower at 40,908.
In a similar trend, RIL shares were trading 2.32 per cent lower at Rs 1,445.55 per cent on the National Stock Exchange (NSE). The scrip opened flat at Rs 1,479and touched a day's low of Rs 1,440.60 apiece.
Macquarie highlighted some of the key risks, including deal with Saudi Aramco, Reliance Jio's average revenue per user (ARPU), concerns over IMO benefit, and increasing competition in the retail segment.
During December quarter, Mukesh Ambani-led firm reported a 13.5 per cent rise in its net profit at Rs 11,640 crore against Rs 10,251 crore in the corresponding quarter last year. This is the highest quarterly net profit earned by any private company, surpassing its own previous best of Rs 11,262 crore clocked in the July-September quarter of current fiscal. RIL's stellar performance in Q3 came after a turnaround in oil refining business coupled with the continued rise of retail and telecom arms. In Q3 of FY19, RIL posted consolidated revenue of Rs 1.68 lakh crore in comparison to Rs 1.71 lakh crore in the same period last fiscal.
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By Chitranjan Kumar