India’s largest company, Reliance Industries (RIL) will be in focus for its upcoming bonus issue next week. The record date is fixed on October 28, a day before the Dhanteras which will kick start the Diwali festival for Samvat 2081. Ahead of the bonus, brokerage Geojit is the latest to recommend BUY on this Mukesh Ambani-backed stock.
Reliance Industries Share Price:
Ahead of the record date on Monday, October 28, Reliance’s stock price closed at Rs 2655.45 apiece on October 25th with a market cap of Rs 17,96,726.60 crore. The stock has dipped by nearly 3% in this week’s trading session.
YTD, the stock has edged higher by 2.5%. The stock’s 52-week high and low are at Rs 3,217.90 and Rs 2,221.05 apiece respectively. The price-to-equity ratio of the heavyweight is at 49.18x, while its return on equity stood at 6.97%.
Reliance Industries Bonus Issue:
In a major development, Reliance Industries has announced the record date for its upcoming bonus issue. The Mukesh Ambani-backed company has fixed Monday, October 28, 2024, as the record date to determine the members of the company, eligible for bonus equity shares in the 1:1 ratio.
A 1:1 bonus issue ratio would mean that Reliance will allot 1 new fully paid-up equity share of Rs 10 face value, against every 1 existing equity share of Rs 10 face value.
Just as Reliance has promised, it plans to coincide the bonus issue with the upcoming festive season in India and as an early Diwali Gift.
This will be the first bonus issue by Reliance in seven years. The last bonus issue was also of 1:1 ratio in September 2017. While Reliance’s first bonus issue was also of 1:1 in November 2009.
Reliance Stock BUY:
In its latest note, Geojit said, “RIL’s Q2FY25 performance was impacted by mixed results across its operating segments. However, we expect the upcoming festive season to boost demand for its retail business, driving growth in this segment. On the digital front, recent tariff hikes and ongoing technology advancements should strengthen Jio’s customer base, supporting its growth momentum.”
Further, the brokerage added, “Macro environment disruptions require close monitoring for fuel cracks and downstream deltas for steady performance of the O2C segment. Despite these mixed results, we have positive outlook and retain BUY rating based on SOTP valuation with a revised target price of Rs. 3,034.”
Reliance Industries Ltd (RIL) manufactures petrochemicals, synthetic fibres, fibre intermediates, textiles, blended yarn and polyester staple fibre. Its petroleum refinery-cum-petrochemicals complex in Jamnagar, India, produces gasoline, superior kerosene oil and liquefied petroleum gas, among other products.
In Q2FY25, the company’s consolidated net profit attributed to the owners of the company, at Rs 16,563 crore, declining by 4.8% from its PAT of Rs 17,394 crore in the same quarter a year ago. Reliance’s Q2PAT is higher compared to net profit of Rs 15,138 crore in Q1FY25.
Further, gross revenue witnessed a gradual upside of 0.8% YoY to Rs 258,027 crore in Q2FY25, compared to Rs 255,996 crore in Q2FY24. As per Reliance, on the top-line front, oil-to-chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products.
Story first published: Saturday, October 26, 2024, 5:33 [IST]
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