Broking houses cut target price for RIL after disappointing Q1 show

Steepest cuts from Citi and Morgan Stanley; stock sheds 3.33% to end at Rs 2,420

About a dozen broking houses have cut their target price for Reliance Industries after the conglomerate posted disappointing earnings for the quarter ended June 2022. The steepest cuts have come from foreign brokerages Citi and Morgan Stanley, data available on Bloomberg showed.

Share of RIL fell 3.33 per cent to end at Rs 2,420 on Monday. The company, which announced its financials on Friday after the market close, missed Street estimates due to weak near-term outlook for the oil-to-chemicals (O2C) segment--which has accounted for 91 per cent of incremental operating profit in Q1—on the back of declining Singapore gross refining margins. While O2C is a drag, the outlook for RIL’s digital and retail business, however, remains upbeat, believe analysts.