Why did RIL's shares plummet despite analysts' positive projections?
Synopsis Reliance Industries' shares experienced a decline of over 3% on Monday. This followed the release of Q1 earnings that were lower than anticipated. Investors reacted to the results and a deferred IPO plan. Despite the dip, brokerages maintain a positive outlook on the company. They foresee potential growth triggers in the near future. Mumbai: Shares of Reliance Industries dropped over 3% on Monday as investors weighed the conglomerate's lower-than-expected Q1 earnings against analysts' positive outlook on stock after results. Stock ended at ₹1,428.6 on Monday, down 3.2%, capping gains in Sensex and Nifty, which ended 0.5% higher.
ADVERTISEMENT "Reliance shares had recently rallied on expectations of strong quarterly results and a potential IPO announcement for its telecom business," said Sumit Pokharna, VP, fundamental research, Kotak Securities. "But, the management's clarification the IPO is deferred to next year had earlier led to some correction, and combined with results below Street estimates, we saw some profit-booking." The stock has gone up about 17% so far this year, against Nifty's 5.7% gains. PAT in June quarter stood at ₹30,681 crore, up 36.8% from January-March. Its revenues from operations stood at ₹2,48,660 crore, down 6% from previous quarter. It had recorded a one-time gain from selling its stake in Asian Paints for nearly ₹8,900 crore.
Brokerages remain positive on company, with most retaining 'buy' and 'add' ratings post results. Price targets imply an upside of 8-19% from current levels. "We see 3 growth triggers for RIL in near term: scale-up of new energy business; Jio tariff hikes; and potential IPO/listing for Jio which has now been pushed beyond 2025," said Nomura. The stock may underperform in near term. "In absence of clear catalysts, stock may remain a laggard," said Hemang Jani, director at Finazenn.
Jani said Q1 results for O2C and retail businesses were below market expectations, while telecom unit results were in line with expectations.
(You can now subscribe to our ETMarkets WhatsApp channel)
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained
Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms
Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips
L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first?
Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more
SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders
API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading
Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains
Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains
NEXT STORY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
23 minutes ago
- First Post
Why Gen Zers are becoming 'sus' about getting college degrees
A recent survey by ResumeGenius, which polled 1,000 full-time Gen Z workers across the US, shows that young adults have second thoughts about getting college degrees. While every one in four Gen Zers admitted they regret getting degrees, others wish they had picked a more lucrative field. So, what's fuelling Gen Z's ick towards colleges? read more A recent survey by ResumeGenius, which polled 1,000 full-time Gen Z workers across the US, shows that many young adults are having second thoughts about their college experience. Image for Representation. For teens coming of age in the late 2010s and early 2020s, the message was clear (and taught by most parents): finish school, go to college, and you'll land a secure job. It was seen as a guaranteed path to success. But Gen Z isn't so sure anymore. With college costs soaring, student debt piling up, and many graduates struggling to find stable work, that promise feels shaky. Add to that the rise of artificial intelligence changing entire industries, and it's no surprise more young people are asking: Was college really worth it? STORY CONTINUES BELOW THIS AD 1 out of 4 GenZs feel college was not worth it A recent survey by ResumeGenius, which polled 1,000 full-time Gen Z workers across the US, shows that many young adults are having second thoughts about their college experience. Some say they wish they had studied something else, or skipped college altogether. About one in four Gen Zers admitted they regret going to college or wish they had picked a more lucrative field, like tech, healthcare, engineering, or finance. 'Many Gen Z students feel they were told college was the only path, only to see people with strong degrees underemployed or overlooked,' said Allison Danielsen, CEO of career platform Tallo, in a conversation with Fortune. She added that students are now 'questioning whether college still delivers real value.' Tallo also conducted its own survey of over 2,000 people aged 18 to 30. They found that 62 per cent weren't even working in the field they'd originally intended to pursue. About one in four Gen Zers admitted they regret going to college or wish they had picked a more lucrative field, like tech, healthcare, engineering, or finance. Image for Representation. Meanwhile, 25 per cent said they're actively struggling to find jobs in their chosen industry, leading many to wonder whether the time, effort, and money spent on a degree was worth it. Only about a third of Gen Z workers reported being happy with their current career path. And when you look at the numbers, it's easy to see why there's growing frustration. With average tuition nearing $38,000 (Rs 32.8 lakh) a year and Gen Z students carrying an average of $23,000 (Rs 19.8 lakh) in debt, college is starting to feel like a pricey gamble with no guaranteed payoff. STORY CONTINUES BELOW THIS AD It's not just students, even parents are rethinking things. A separate survey by American Student Assistance of more than 3,000 middle and high schoolers found that 70 per cent of teens say their parents are now more open to alternatives like trade schools or apprenticeships over traditional college. 'Parents are waking up. College doesn't carry the same [return on investment] it once did because the cost is outrageous, and the outcome is uncertain,' Trevor Houston, a career strategist at ClearPath Wealth Strategies, told Fortune. 'Students now face the highest amount of debt ever recorded, but job security after graduation doesn't really exist.' Also read: What is career catfishing, the Gen Z strategy to irk ghosting corporates? The AI fear A growing worry among Gen Z is the rapid rise of artificial intelligence and what it means for their future. According to a report by Indeed, nearly half (49 per cent) of job seekers say their college degree feels less valuable in today's job market because of how quickly AI is changing the job market. STORY CONTINUES BELOW THIS AD Entry-level jobs, often the first step for graduates entering the workforce, are increasingly being taken over by automation. And that's adding to the uncertainty. According to a report by Indeed, nearly half (49 per cent) of job seekers say their college degree feels less valuable in today's job market because of how quickly AI is changing the job market. Image for Representation. Reuters 'Damned if they do or don't [go to college],' said Colin Rocker, a Gen Z content creator who shares career advice for young professionals, in a conversation with Fortune. 'On one hand, their parents, counsellors, and professors urge them away from more liberal arts majors like literature or history, but every day in the news, they see thousands of people laid off who work with more technical degrees like engineering, computer science, and marketing, as AI starts to take over.' Experts say these jobs may not vanish completely, but they are shifting into roles that barely resemble what they used to be. For Gen Z, that means the career paths they once envisioned might no longer exist, or at least, not in the way they imagined. But that doesn't mean all hope is lost. Instead, they may need to pivot and learn how to work alongside AI, rather than fear it. STORY CONTINUES BELOW THIS AD Gen Z 'is now faced with carving out a place for themselves in an economy where they're fighting for opportunity against the most advanced systems and technologies we've ever seen,' Rocker added. With input from agencies
India.com
23 minutes ago
- India.com
Who is Anish Shah, one of highest-paid CEOs in India, his salary is Rs 47 crore, he currently works for...
Who is Anish Shah, one of highest-paid CEOs in India, his salary is Rs 47 crore, he currently works for... Dr. Anish Shah has made it to the elite list of the top five highest-paid CEOs in the global auto industry after receiving a remarkable 95 per cent increase in his salary. His total compensation for the financial year 2024-25 now stands at an impressive Rs. 47.33 crore. Dr. Shah currently serves as the Managing Director and CEO of the Mahindra Group. Shah joined Mahindra in 2014 as Group President (Strategy) and has been an important part of the company's journey ever since. He led many big decisions that helped Mahindra adopt digital tools, use data better, and improve coordination among its different businesses. In 2020, he was promoted to Group CFO and Deputy Managing Director. The following year, in 2021, he became the Group CEO and Managing Director. Since then, Mahindra & Mahindra has grown rapidly in the Indian car market. The company moved up from fourth to second place in the passenger vehicle segment. Popular models like the Scorpio, Thar, and the new XUV3XO played a big role in this success. Dr. Shah's leadership and clear strategy have been key in driving this strong performance. Executive pay soars globally, Dr. Anish Shahjoins top league of auto industry's highest-paid CEOs In a global trend that has seen executive salaries rise by nearly 50 per cent in real terms since 2019, India's auto sector is no exception. Hero MotoCorp's Chairman and Managing Director, Pawan Munjal, has once again topped the list as the highest-paid automotive CEO in India for FY25, with a total compensation of Rs. 109.41 crore, unchanged from the previous year. Making headlines this year is Dr. Anish Shah, the Managing Director and Group CEO of Mahindra Group, who has joined the top five highest-paid CEOs in the Indian auto sector for the first time. He saw a staggering 95 per cent increase in his pay for FY25, bringing his total earnings to Rs. 47.33 crore. A closer look at his compensation reveals that Rs. 16.49 crore came as fixed salary, Rs. 65 lakh as company contributions to various funds, and Rs. 1.13 crore through allowances and other perks (excluding ESOPs). However, the bulk of his earnings which is around Rs. 30.18 crore came from stock options (ESOPs) he exercised during the year. ESOPs accounted for nearly two-thirds of his total pay package. Before his tenure at Mahindra, Dr. Shah served as President and CEO of GE Capital India between 2009 and 2014. He played a key role in the company's strategic overhaul, including the turnaround of the SBI Card business. Over a 14-year career at GE, he held several senior positions across its U.S. and international operations. Academically, Dr. Shah holds a Ph.D. from Carnegie Mellon University's Tepper School of Business, where his research focused on corporate governance. He also earned a postgraduate diploma in management from IIM Ahmedabad and a master's degree from Carnegie Mellon.
Deccan Herald
23 minutes ago
- Deccan Herald
Canara Bank consolidated net profit declines 21.4% to Rs 3,195 crore in Q1
The total income of the bank has gone up by 12.10% to Rs 41,441 crore during the June quarter as against Rs 36,966 crore in the year ago period.
