Shares of Reliance Industries opened higher today on the NSE, priced at Rs 2,731.40, compared to the previous close of Rs 2,708.15. This rise in stock price followed the announcement that the company would issue 1:1 bonus shares, with the record date set for October 28, 2024.
In its Q2 FY25 earnings report, Reliance Industries Ltd. (RIL) disclosed a consolidated net profit of Rs 16,563 crore, reflecting a decline of 4.78% from Rs 17,394 crore in the same quarter last year. The overall income increased slightly by 0.65%, reaching Rs 2,40,357 crore. However, the company’s EBITDA fell by 2% year-on-year to Rs 43,934 crore, with EBITDA margins decreasing by 50 basis points to 17%. On a standalone basis, RIL reported a 2.5% drop in revenue to Rs 1.33 trillion and a significant net profit decline of 31.2% to Rs 7,713 crore. Additionally, RIL’s consolidated gross debt rose to Rs 3.36 trillion from Rs 2.95 trillion the previous year, while its net debt stood at Rs 1.16 trillion as of September 2024.
Furthermore, the Central Goods and Services Tax and Central Excise Superintendent in Lucknow imposed a penalty of Rs 64,917 on Reliance for allegedly incorrectly availing input tax credits under various tax acts. The company plans to appeal this order, stating that it does not impact its operations or other activities.
Technical analysis indicates that Reliance is currently trading near key support levels, with immediate support at Rs 2600. Analysts suggest that the stock may present a buying opportunity, targeting prices between Rs 3200 and Rs 3400 if market conditions allow, provided that proper risk management strategies are in place. The Relative Strength Index (RSI) is currently at 38 and trending upwards, indicating increasing buying momentum, with a recommended stop-loss at Rs 2500 to mitigate risks.
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