Reliance Industries share price jumps 1% today after strong Q4 earnings; Should you buy, hold or sell RIL stock?

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Reliance Industries Ltd share price jumped 1% to Rs 2372.25 on Monday after Mukesh Ambani-led companys net profit surged 19.1% to Rs 19,299 crore on-year in Q4FY23, beating analysts expectations..

Our view of a strong earnings outlook is premised upon 1) RIL is set to increase production from MJ field in FY24F (~12 mmscmd rise), 2) strength in O2C earnings may continue for a few more quarters, ~1.5 mbd of new refining capacity which was scheduled to start in CY23 has got delayed and as polyester demand has likely bottomed out, 3) while telecom ARPU in 4QFY23 at Rs 178.8 was a tad disappointing, said analysts at B&K Securities..

Analysts have rolled forward valuation to be based on FY25F leading to a SOTP-based target price of Rs 2,845 per share (earlier Rs 2,791 per share), implying a 21% stock price upside...

Our ADD rating on Reliance Industries (RIL) with a price target of INR 2,637/sh is premised on (1) recovery in the O2C businesses; (2) EBITDA growth in the digital business, driven by improvement in ARPU, subscriber addition, and new revenue streams; and (3) potential for further value unlocking in the digital and retail businesses, said analysts at HDFC Securities...

As highlighted in our Mar23 note, the recent weakness in RILs share price, primarily due to concerns around high capex and resultant rising debt, has meant that its CMP is near our bear-case valuation of ~INR 2,000/share, said analysts at JM Financial.. Kotak Securities: Buy Fair Value: Rs 2800..

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