Reliance Industries (RIL), India's largest stock in terms of m-cap, will be in focus next week, due to its financial results announcement for the second quarter of FY25. However, that's not all, investors will also look forward to the bonus issue record date announcement from the billionaire Mukesh Ambani company. Ahead of the Q2, Reliance's share price witnessed a bearish week.
Reliance Industries Share Price:
The large-cap heavyweight stock ended at Rs 2742.20 apiece, on BSE, with market cap of Rs 18,55,366.53 crore on October 11. During the trading week, overall, Reliance stock dipped by a little over 1%.
Reliance's monthly and six-monthly performance is also bearish with a decline between 6.5% to 7.5%. YTD, the stock is up by 5.9%.
Reliance Industries Bonus Issue:
Holding the title of India's largest company in terms of market capitalisation, Reliance has scheduled a board meeting on October 14, for the Q2FY25 earnings report. Investors are hoping for a record date announcement for Reliance's upcoming bonus issue as well.
Earlier, this week, Reliance fixed October 7th as the deadline for allowing those investors to pay call money on partly paid-up shares, turning them into fully-paid up shares.
That is because Reliance's bonus issue will be rewarded only to those investors who have fully paid-up shares and are in the register books of the company by record date.
Most likely Reliance is going to announce a record date in October month ahead of Diwali.
Last month, on September 5, Reliance said, "This will be the largest-ever issuance of bonus equity shares in the Indian equity market. The issuance and listing of bonus shares will coincide with the upcoming festive season in India and will be an early Diwali Gift to all our esteemed shareholders." Hence, the record date is expected in October.
Reliance's bonus issue ratio means, every shareholder holding 1 (one) fully paid-up equity share of Rs. 10/-each on the record date will receive 1 (one) fully paid-up equity share of Rs. 10/- each.
Accumulate Reliance Industries Share Price:
Prabhudas Lilladher has recommended accommodating the stock for a target price of Rs 2,966.
In its preview note, Prabhudas said, " For Reliance's standalone segment, refining margins are expected to decline and Petchem will remain under pressure. We expect a 0.6% QoQ subscriber growth and 6% ARPU to Rs194/mon growth for Jio while the retail segment should continue its resilient performance."
During June 2024, consolidated net profit that was attributable to owners of the company, dropped by 5.45% YoY and 20.12% QoQ to Rs 15,138 crore in Q1FY25. However, consolidated revenue stood at Rs 236,217 crore, a growth of 12.04% from Rs 210,831 crore in Q1FY24, however, it declined marginally by 1.86% from Rs 240,715 crore in the March 2024 quarter.
In Q1, EBITDA stood at Rs 38,765 crore in Q1FY25, slightly up from Rs 38,093 crore in Q1FY24, but declined sharply from Rs 42,516 crore in Q4FY24. Meanwhile, EBITDA margins contracted to 16.7% in the quarter, compared to 18.4% in Q1FY24 and 18% in Q4FY24.
Reliance is India's largest private sector company, with a consolidated revenue of INR 10,00,122 crore (US$ 119.9 billion), cash profit of INR 1,41,969 crore (US$ 17.0 billion) and net profit of INR 79,020 crore (US$ 9.5 billion) for the year ended March 31, 2024. Reliance's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.
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