Reliance Industries Ltd (RIL) share fell over 2% in early trade despite the Mukesh Ambani led conglomerate reporting more than double of its March quarter net profit. RIL share lost 2.55% to Rs 1,943.7 against previous close of Rs 1,994 on BSE.
The stock has fallen 2.73% returns in the period.
RIL share trades higher than 20 day moving averages but lower than 5 day, 50 day, 100 day and 200 day moving averages.
The large cap share has lost 33.28% in one year and lost 1.48% since the beginning of this year.
Market cap of the firm fell to Rs 12.41 lakh crore on BSE.
RIL's net profit more than doubled in Q4 as consumer businesses of retail and telecom as well as petrochemicals saw sequential recovery on improved spreads offsetting continued weakness in refining business.
Consolidated net profit in Q4 came at Rs 13,227 crore in January-March quarter compared with Rs 6,348 crore earned a year back.
The fourth quarter net profit included Rs 797 crore exceptional item due to gain on sale of US shale assets. Revenue rose 13.6 per cent to Rs 1,72,095 crore.
The oil-to-telecom conglomerate reported the highest ever annual net profit of Rs 53,739 crore, up 34.8 per cent year-on-year.
This was aided by record annual EBITDA for Jio Platforms at Rs 32,359 crore and highest ever annual EBITDA for Reliance Retail at Rs 9,789 cror.
Motilal Oswal said, "Using SOTP, we value the O2C business at FY23E EV/EBITDA of 7.5x, arriving at a valuation of Rs 713/share for the standalone business and add Rs 61 for the E&P assets. We ascribe an equity valuation of a) Rs 755/share to RJio on FY23E 18x EV/EBITDA and b) Rs 670/share to Reliance Retail on FY23E 31x EV/EBITDA, Our higher multiple to the Retail and Digital biz underscores the strong growth in new commerce, coupled with opportunities in the Digital space and tariff rationalization. Reiterate Buy, with Target Price of Rs 2,195/share."
"Petrochemicals and retail were the bright spots in Q4. Retail may lose momentum due to covid second wave while petrochemicals may be hit by large capacity additions in H2/Q4FY22E. Regaining momentum in subs addition, tariff hikes, retail growth back to pre-covid levels, GRM recovery and stake sale in O2C are key to stock performance improving (underperformed since Sep'20). Retain HOLD with a target price of Rs 2,033 (2% upside)," said ICICI Securities.
AR Ramachandran, co-founder and trainer, Tips2Trades said, "Even though the Q4FY21 results of Reliance Industries was excellent on a Y-o-Y basis, it was below lofty street estimates and a surging pandemic has led to a mild drop in stock prices. Technically, however, long-term investors can look to buy near 1,920-1,930 levels for higher targets. Rs 2045 remains a stiff resistance."