(Reuters) – Shares of Reliance Industries climbed as much as 5% in early trade on Friday, after the country’s most valuable company topped quarterly profit estimates on strong demand in its retail and telecom units.
Reliance, the second-top heavyweight stock on the benchmark Nifty 50 index, was last up 2.5%, on track to gain the most in a day since November 2024.
The company reported a bigger-than-expected third-quarter profit late on Thursday, with gains from its major units including the mainstay oils-to-chemicals segment, retail segment and telecom business.
At least six brokerages raised their ratings on the “buy”-rated stock after results, while four raised price targets, as per data compiled by LSEG.
“Reliance is back on a growth path after six months of challenges,” Morgan Stanley said in a note, adding that the “the risk of earnings downgrades” would unwind.
Analysts at J.P.Morgan expect growth in Reliance’s retail unit to support the stock in the near-term, adding that the quarterly growth could reverse the recent decline in the stock.
Reliance shares fell about 6% in 2024 on worries over falling refining margins and future growth worries in the retail segment.
(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)
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