Reliance Industries, the company of Mukesh Ambani, the most prominent tycoon in India and Asia, announced the June quarter results after the market closed on Friday. There has been a decline in the profit and revenue of the company.
The result of the country’s most valuable company Reliance Industries in the June quarter was not as per the market’s expectations. The company’s shares have fallen by about five per cent in the last two days and the market cap has also come down by Rs 1 lakh. But after the result, analysts of most brokerages have increased the target price of Reliance’s stock. 25 out of 31 brokerages have raised the target price of the company’s stock in the range of 0.5 to 15 percent.
Two brokerages have maintained their target prices while two have cut them. On Monday, Reliance shares closed at Rs 2487.55, down 1.92 percent on the BSE.
Analysts have an average target price of Rs 2790 on Reliance stock, an upside of 12% from Monday’s closing price. Most analysts expect a rise in Reliance’s stock. The company’s oil-to-chemical business was under pressure in the June quarter but retail and telecom performed well. BOFA Securities said in a note sent to its clients that Reliance’s AGM could trigger the stock. In this, the company can give updates about its business.
Why can there be a boom Reliance has yet to announce the date of its AGM but it could happen in mid-August. Reliance’s stock reached an all-time high on 19 July. It had gained 31 percent from the low level of March. The company demerged its financial services arm on July 20. In a note sent to its clients, JP Morgan said that apart from earnings, unlocking value through stake sales, IPOs, and listings could accelerate Reliance’s stock over the next 2-3 years.
In the last AGM, the company’s chairman Mukesh Ambani had talked about doubling the market cap of Reliance in five years.