Energy-telecom giant Reliance Industries (RIL) jumped more than 9% in three consecutive sessions to hit an all-time high of Rs 2,788.80 on Thursday. However, shares of the company closed at Rs 2,782.15 on April 21 against Rs 2,544.15 on April 18. The benchmark BSE Sensex gained 1.30% to around 57,912 over the past three trading sessions.
Market watchers believe a substantial number of Refining Gross Margin (GRM) improvements in the recently ended March quarter on hopes of strong quarterly results due to strengthening crude oil prices, expectations a rise in Arpu for Reliance Jio and the recent announcement of a foray into green energy helped sentiment. They also forecast that RIL shares could break through Rs 3,000 in the coming quarters.
Ravi Singhal, Vice Chairman of GCL Securities, said: “Crude oil prices remained positive throughout the March quarter. Therefore, the market expects a strong improvement in GRM leading to strong results in the fourth quarter. So the bulls pumped money into RIL stocks. The company has yet to report its March quarter results.
Brokerage ICICI Securities forecast Reliance Industries could post 64.60% year-on-year (YoY) growth in after-tax profit and a 66.30% increase in EBITDA. It also sees a 36.80% increase in RIL revenue in the March quarter.
B&K Securities said it expects strong results in Q4FY22 for upstream companies and Reliance Industries.
“We are pricing in EBITDA and Adjusted PAT at 45% and 49%, respectively, driven by strong performance from the O2C division, primarily higher QoQ refining margin partially offset by weaker petchem performance in a lower fuel cost environment. higher raw materials. Telecom segment profitability is expected to improve with subscriber additions and rate increases taken in Q3FY22. Retail profits are expected to remain strong in Q4FY22. »
Commenting on the continued price movement of RIL shares, Ravi Singh, Vice President and Head of Research, ShareIndia, added that the company was trending higher after the company sought to become the world’s largest maker of blue hydrogen.
Earlier in February, the company announced that it would reallocate the Rs 30,000 crore plant which currently converts petroleum coke into syngas to produce blue hydrogen at $1.2-1.5 per kilogram .
“This new energy business will increase the company’s net asset value. The RIL share price could touch the levels of Rs 3,000 from the current price, in the short term,” Singh said.
Global brokerage firm Morgan Stanley has set the price target of Rs 3,253 for RIL, indicating an upside of nearly 17% from the current market price.
“RIL’s hydrogen push will reduce operating costs over the medium term, while advancing its net zero carbon goal,” Morgan Stanley said, adding that the value creation potential of the global security pivot energy and the energy transition remains very underestimated for RIL.
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