Shares of Mukesh Ambani-led conglomerate Reliance Industries Ltd (RIL) were trading lower ahead of the firm’s December quarter earnings set to be announced today. RIL stock has remained almost unchanged since earnings for the quarter ended September were announced on October 21, 2022. The stock closed at Rs 2471.95 in the same session
Meanwhile, RIL shares have been falling for the last three sessions. At 9:39 am, today, the stock was trading 0.85% lower at Rs 2450 against the previous close of Rs 2471.10 on BSE.
RIL stock has lost 1.16 per cent in one year and lost 3.86 per cent since the beginning of this year. Total 0.20 lakh shares of the firm changed hands amounting to a turnover of Rs 4.98 crore on BSE today. Market cap of the conglomerate stood at Rs 16.58 lakh crore. The share hit an all-time high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2,181 on March 8, 2022. RIL stock was trading 14.18 per cent or Rs 405 lower against its all-time high today.
In terms of technicals, the relative strength index (RSI) of the stock stands at 40.1, signaling the stock is neither oversold nor overbought. The stock has a one-year beta of 1.1, indicating average volatility during the period. The PE ratio of RIL stands at 26.10 signaling the stock is overvalued compared to its industry. The PE of the industry stands at 12.64. RIL shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The conglomerate is expected to report a 5 per cent fall in net profit on a double-digit growth in sales. Nuvama Institutional Equities expects the oil-to-telecom major to log 4.8 per cent drop in profit at Rs 14,965 crore on a 12.5 per cent YoY rise in sales at Rs 2,08,132 crore.
"We anticipate 10 per cent YoY growth in RIL Ebitda largely driven by strong ONG, retail and telco division offset by subdued O2C. While the benchmark Singapore GRMs remained flat YoY, it has plunged 16 per cent QoQ. Moreover, imposition of windfall tax on HSD/MS/ATF shall weigh on margins further," Nuvama said.
Emkay Global sees Reliance Industries profit falling 4.3 per cent YoY to Rs 15,041.90 crore. It expects revenue to rise 21.3 per cent YoY to Rs 2,24,394 crore. EBITDA margin at 15.5 per cent against 16.1 per cent YoY.
In Q2 of the current fiscal, RIL reported a 0.18 per cent year-on-year (YoY) fall in consolidated net profit at Rs 13,656 crore in the September quarter compared with Rs 13,680 crore in the same quarter last year.
Revenues for the quarter rose 33.74 per cent to Rs 2,32,863 crore from Rs 1,74,104 crore in the same quarter last year. The revenue growth was driven by higher realisation in oil-to-chemical (O2C) business with sharp increase in energy prices.
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