Reliance Industries Reports Strong Fourth Quarter Profit
Reliance Industries Ltd. reported a strong fourth quarter profit, with earnings rising 2% year-over-year to Rs 19,407 crore. Analysts had expected the profit to be around Rs 18,471 crore. Revenue from operations surged 10% year-over-year to Rs 2.64 lakh crore.
The growth was driven by the telecom and retail businesses, which helped offset the impact of a weaker oil-to-chemicals cycle and softer gas realizations. This trend was consistent with the previous quarter, where retail and Jio powered the company’s earnings.
The Jamnagar complex, which houses two refineries with a combined capacity of about 1.4 million barrels per day, has historically been the powerhouse of Reliance’s O2C operations and a key profit driver.
In addition to the results, the company announced a Rs 5.5 dividend and a major fundraising plan, indicating continued expansion plans. Despite a challenging global economic environment, Reliance said it maintained operational discipline and continued investing in growth initiatives, with the management striking an optimistic tone on the outlook.
How to Trade RIL on Monday?
Ahead of the results on Friday, RIL shares closed marginally down at Rs 1,301. However, the stock has performed reasonably well this year, rising nearly 7%.
Analysts are in consensus that the stock is moving sideways within a narrow range and isn’t showing strong movement in either direction. "On the daily chart, we are observing a sideways movement which gives no clear direction of trend," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital Markets.
At present, RIL has immediate resistance at 1,341 level. Any close above 1,341 would propel the upside momentum and in such a scenario, it is likely to test 1,410-1,460 levels.
"A move above Rs 1,320 could lead to a quick rise towards Rs 1,345-1,360, while falling below Rs 1,280 may drag it down to Rs 1,250. RSI is neutral, showing no strong trend. Until a clear move happens, traders can follow range-bound strategies," said Riyank Arora, technical analyst at Mehta equities.
Meanwhile, Vasudeo advised investors to buy the stock at current market levels with a stop loss of Rs 1,250 for a target Rs 1,410-1,460 levels in a couple of weeks.
Conclusion
Reliance Industries reported a strong fourth quarter profit, driven by its telecom and retail businesses. The company also announced a Rs 5.5 dividend and a major fundraising plan, indicating continued expansion plans. Despite a challenging global economic environment, Reliance maintained operational discipline and continued investing in growth initiatives.
Reference : https://economictimes.indiatimes.com/markets/stocks/earnings/ril-q4-profit-beats-expectations-how-will-the-stock-react-on-monday-key-tips-to-trade/articleshow/120664691.cms
