Elara Securities raises target price of Reliance Industries post Q3 results; buy or sell?

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₹3,354, while retaining the ‘buy’ tag on the stock after conglomerate reported its third quarter results for FY24 last week. “We reiterate Buy with a higher TP of ₹3,354 from ₹3,194. We assume 22.8x (unchanged) FY26E EV/EBITDA for Retail, 18.0x (unchanged) for Digital Services and 6.5x (from 6.0x) for O2C," Elara Securities said in its report.

Also read: Reliance Retail Q3FY24 results: Net profit rises 32% YoY to ₹3,165 crore, revenue up 24% YoY Reliance Industries’ EBITDA grew 16% year-on-year (YoY) to ₹407 billion in Q3FY24 versus its estimates of ₹381 billion. The conglomerate further reported a 11% YoY rise in PAT to ₹196 billion as compared to estimated figure of ₹175 billion. The company reported revenue from operations at ₹74,373 crore, marking a 23.8% YoY growth compared to Q3 FY23's revenue of ₹60,096 crore, driven by strong performance in the Grocery, Fashion, Lifestyle, and Consumer Electronics segments.

“Reliance Retail has delivered a strong performance during the festive quarter. Our business success is intricately woven into the larger fabric of India's economic growth, and together, we are shaping a compelling story of innovation and world-class possibilities for the future. We remain resolute in our commitment to bring high-quality products at great value to our customers with an engaging shopping experience," said Isha M.

Ambani, Executive Director, Reliance Retail Ventures Limited. Also read: Reliance Q3 Results Highlights: Jio, Retail shine; O2C revenue declines; 5 key highlights from RIL Q3 earnings It posted a 32% YoY increase in its consolidated net profit at ₹3,165 crore in Q3FY24. In the same period last year, the company posted a net profit of ₹2,400.