RIL shares fell 2.62 per cent to hit a low of Rs 2,469.55 on BSE. This was in addition to a 3.19 per cent drop in the previous session. 
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RIL shares fell 2.62 per cent to hit a low of Rs 2,469.55 on BSE. This was in addition to a 3.19 per cent drop in the previous session. Shares of Reliance Industries have lost nearly Rs 1 lakh crore in market capitalisation (m-cap) since the demerger of its financial services business in to Reliance Strategic Investments (to be renamed as Jio Financial Services or JFS). The stock commanded a m-cap of Rs 19,21,575 on July 19, which declined to Rs 17,72,585 crore on the day (Thursday) of corporate action . The stock commanded m-cap of Rs 16,74,658 on Monday, which suggested a roughly 98,000 crore in m-cap loss in the two sessions.
On Monday, the stock fell 2.62 per cent to hit a low of Rs 2,469.55 on BSE. This was in addition to a 3.19 per cent drop in the previous session. The fresh weakness came post RIL's Q1 results, as a few analysts believe upside is limited for the stock and the next trigger for it would be any announcement on retail business unlocking or updates on new energy business in the forthcoming annual general meeting (AGM).
As far has Jio Financial Services listing is concerned, analysts see the process to take two-three months. Nomura India expects RIL to provide a timeline for JFS’s listing and a detailed strategy for the new entity at its annual general meeting (AGM) in the coming weeks. Axis Securities sees JFS to get listed in the next 2-3 months. "There is no concrete listing day yet and it may take few weeks’ time to get all the listing approvals. JFSL being carved out from one of the biggest giants. We expect the listing process should be fast-tracked and quite likely JFS may be listed in a month’s time (or even earlier)," said Nuvama Institutional Equities.
Nomura India has a target of Rs 2,925 on the stock. The share price target suggests a 15.33 per cent potential upside for RIL over Friday's closing price. Macquarie sees the stock at Rs 2,100. Citi has suggested a target of Rs 2,750 on the stock. Jefferies finds the stock worth Rs 2,935 level.
For the June quarter, the oil-to-telecom major reported a consolidated net profit of Rs 18,258 crore, down 6.09 per cent year-on-year (YoY) from Rs 19,443 crore in the corresponding quarter last year. Profit (attributable to the owners) came in at Rs 16,011 crore against Rs 17,955 crore, down 10.82 per cent YoY. Analysts were largely expecting profit to fall anywhere between 8 per cent and 17 per cent.
Systematix Institutional Equities said RIL’s June quarter revenue and Ebitda were in line with expectations while profit after tax was slightly above estimates due to higher-than-expected other income. This brokerage has cut its target price to Rs 2,550 from earlier Rs 2,766 largely reflecting exclusion of Jio Financial Services (JFSL). The stock is trading at an EV/Ebitda of 10.8 times and PER of 22.7 times on FY25E.
"We downgrade the stock to HOLD from earlier 'BUY' due to limited upside after the recent run-up," it said.
A few brokerages, however, maintained their faith on the stock and suggesting targets that suggest 15-20 per cent potential upside.
"We value the refining and petrochemical segments at 7.5 times EV/Ebitda, arriving at a valuation of Rs 904 per share for the standalone business. We ascribe an equity valuation of Rs 750 per share to RJio and Rs 1,500 per share to Reliance Retail, factoring in the recent stake sale. We have further included an equity valuation of Rs 16 per share pertaining to New energy on book value. Our target is adjusted for Jio Financial Services (JFS) valuation. We reiterate our BUY rating with a target of Rs 2,935," said Motilal Oswal Securities.
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