Brokerages upbeat on RIL’s retail, telecom businesses, retain ratings

NEW DELHI: Despite the weak performance in its refining and petrochemical businesses, most brokerages have maintained their rating and price targets on Reliance Industries (RIL) as they expect the company’s telecom and retail ventures to remain strong.

On Friday, RIL reported a 13.5 per cent rise in net profit in the third-quarter of 2019-20, boosted by a robust performance of its consumer facing businesses which offset the impact of lower price realisation from petrochemical and refining business that led to a 1.4 per cent decline in revenue.

Of the 26 brokerage reports ET studied, eight have increased the price targets on RIL shares while six reduced it after the earnings. Nineteen of the 26 brokerages have a ‘buy’ rating on the stock, with the average price target given at over Rs 1,700.