The Reliance Industries stock hit a fresh all-time high today after the conglomerate announced its record Q1 earnings. At 12:01 pm, the stock was trading 0.83% or 9.35 points higher at 1,138 level on BSE. The stock hit an intra day high of 1,157.55 after opening at 1,136 level on the BSE. The stock has gained 2.26% during the last two sessions.
It has gained over 42% during the last one year and is up over 23% since the beginning of this year.
Later, the stock closed 1.78% or 20.10 points higher at 1149.70 level on BSE.
Brokerages have turned more bullish on the stock after the firm announced its Q1 earnings.
Motilal Oswal gave a buy call on July 28 when the stock was trading at 1,127. The brokerage gave a price target of Rs 1,301 for 52 weeks.
Edelweiss gave a buy call on July 28 when the Reliance stock stood at 1,129.60. The brokerage gave a price target of 1,457 per share for duration of 52 weeks.
27 of 37 brokerages rate the stock "buy" or 'outperform', five "hold" and five "underperform" or "sell", according to Reuters.
CLSA Research too raised the price target to Rs 1,365 from Rs 1,230 with "buy" rating. The brokerage said Jio's big ramp-up in subscriber additions and doubling of earnings before interest tax, depreciation and amortisation (EBIDTA) over FY18-21 were key triggers.
The oil-to-telecom conglomerate on Friday reported its highest-ever quarterly net profit of Rs 9,459 crore or Rs 16 per share for April-June quarter, 17.9 per cent higher than Rs 8,021 crore or Rs 13.5 per share logged in the same period of previous fiscal.
The company's consolidated revenue stood at Rs 141,699 crore, which rose 9.7 per cent sequentially and 56.5 per cent from the previous quarter last year.
The increase in revenue was primarily on account of higher sales from refining and petrochemical products. Consumer businesses also provided a further boost to the overall revenue. Operating profit before other income and depreciation increased 64.6 per cent to Rs 20,661 crore on the back of 33 per cent volume growth and significant margin improvement in petrochemical business.
Reliance Industries is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms. The company's segments include refining, petrochemicals, oil and gas, organized retail and telecom among others.
Written and edited by Aseem Thapliyal