Reliance Industries shares tank 2% after Q1 results disappoint; should you buy, sell, or hold RIL stock?

financialexpress.com:

Reliance Industries share price fell 2.3% to a low of Rs 2,481 in trade on Monday as the street factored in Mukesh Ambani-led RIL’s first quarterly earnings for the fiscal year. Reliance Industries released its first quarter earnings with profit at Rs 16,011 crore, down 10.8% in comparison to Rs 17,955 crore during the first quarter of FY23, on account of softening demand and a drop in petrochemical margins, which have tanked from record highs last year. On account of higher finance cost and increased depreciation. It posted revenue from operations at Rs 2,10,831 crore, down 5.3% on-year.

“The oil-to-chemical (OTC) segment lagged with a 27% YoY decline in segmental EBIT, reflective of the weak demand trends in downstream petroleum segment. Upstream, retail and digital services continued to show good YoY momentum – with sharply higher gas production from the new fields and sustained improvement in retail footprint driving growth. Going forward, we do see earnings momentum supported by retail, upstream and RJio for FY24E. Also, tight global supply may see OTC prospects improve over H2FY24E. Progress on the new energy business, improvement in RJio and retail are key drivers going forward for Reliance. We retain ADD on the stock, with our core thesis of ‘high capex, low FCF yields’ and ‘low return ratios offsetting earnings strength’ remaining unchanged as of now. Target price at Rs 2,670.”

“O2C shall remain weak in the near-term led by weak GRMs and low petchem demand offset by low ethane prices. RIL’s new energy shall unleash the next leg of growth opportunity. We keep estimates unchanged, but revise TP to INR3,088 from INR3,205 (strip off JFSL value of INR117/share from non-operating assets).”

“Using SOTP, we value the