Reliance Industries share ends 8.6% lower post Q2 earnings, check what brokerages say

Investors' wealth came down by Rs 1.2 lakh crore as the total market cap of the oil conglomerate stood at Rs 12.69 lakh crore as of today's closing session

RIL stock price has fallen 15% in one month RIL stock price has fallen 15% in one month

Shares of index heavyweight Reliance Industries fell over 9% following the quarterly results announcement and closed 8.6% lower on Monday below the key level of  Rs 2,000.

Investors' wealth came down by Rs 1.2 lakh crore as the total market cap of the oil conglomerate stood at Rs 12.69 lakh crore as of today's closing session.

Last week, Reliance Industries emerged as the biggest laggard as the valuation of India's most valued firm tanked by Rs 39,355.06 crore to Rs 13,89,159.20 crore.

Slipping after 2 days of consecutive gain, RIL stock today touched an intraday low of Rs 1,860, falling 9.46% on BSE. Later, the stock closed 8.62% lower at Rs 1,877.30, as against Friday's closing of Rs 2054.35. The stock of India's most-valuable company opened at Rs 2,033.50, also its intraday-high.

Reliance Industries share stands higher than 200-day moving averages but lower than 5, 20, 50 and 100-day moving averages.

RIL stock price has fallen 15% in one month. However, the share value has risen 23% since the beginning of the year.

RIL reported a net profit of Rs 9,567 crore in the July-September period, marking an annual decline of 15 per cent, compared to a profit of Rs 11,262 crore in the corresponding period a year ago. Revenue from operations fell 24 per cent to Rs 1,16,195 crore from Rs 1,53,384 crore in the year-ago period.

The petrochemicals business has reported a segment revenue of Rs 29,665 crore compared to Rs 38,538 crore. The EBITDA of Q2FY21 stood at Rs 5,964 crore, while EBIT of Q2FY20 was Rs 7,602 crore.

Goldman Sachs rated a 'buy' call with a target price of Rs 2,330 on the stock and said in its note,"The Q2FY21 earnings were above expectations on a faster omnichannel-led retail recovery. It said RIL has already witnessed sustainable sequential recovery across segments."

Edelweiss Securities retained hold ratings on the stock with target of Rs 2,105. The brokerage said, "Our two-stage reverse-DCF (discounted cash flow) shows the market is baking in high EPS growth, particularly for Jio (35 per cent per annum for 10 years). Besides, deleveraging to net cash has counter-intuitively lifted RIL's WACC (weighted average cost of capital) to its high cost of equity."

CLSA retained an 'outperform' rating on RIL with a price target of Rs 2,250 while Goldman Sachs has a 'buy' call with a price target of Rs 2,330.

CLSA said," RIL has possibly exhausted its large near-term inorganic triggers. The stock is already baking in deal valuation." The brokerage also cut its FY22-23 EPS projections by 4 per cent.

The refining-to-retail conglomerate had a net debt of Rs 1.61 lakh crore in March, but it turned net cash of Rs 10,256 crore as the company received Rs 1.47 lakh crore of the promised investments. The company has received Rs 2.5 lakh crore investment from investors like Facebook, Google and BP Plc.

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