Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>Reliance Industries’ consumer businesses are expected to drive earnings growth going forward.</li><li>However, RIL’s aggressive expansion in its retail and 5G investments have led to its capital expenditure rising to an all-time high in FY23.</li><li>Brokerages maintained their bullish outlook on the company, noting that the leverage levels are expected to remain comfortable thanks to strong cash flows.</li></ul>In spite of its Q4 earnings beating analyst estimates, RIL stock traded flat on Monday as the street continues to remain cautious on account of its growing capex. In March, the stock touched a 52-week low of ₹2,180, and has been trading flat since the beginning of April. And, the recent earnings report hasn’t changed the trajectory. In the morning trade on Monday, its shares rose 0.2% to ₹2,354 and gave up most of the early morning gains due to profit booking. Reliance Industries Q4 <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-q4-net-profit-of-19299-crore-beats-analyst-expectations-driven-by-retail/articleshow/99673940.cms">net profit rose</a> 19% YoY to ₹19,299 crore due to steady growth in the consumer businesses, and its revenues grew 2% to ₹2.16 lakh crore. For the full FY23, RIL <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-q4-net-profit-of-19299-crore-beats-analyst-expectations-driven-by-retail/articleshow/99673940.cms">reported</a> a 9.9% rise in net profit to ₹66,702 crore, while the earnings before interest, taxes, depreciation and amortization (EBITDA) was ahead of brokerage estimates at ₹1.4 lakh crore. The oil-to-data giant’s FY23 revenue grew 23.7% to ₹8.93 lakh crore. <cmsannotation type="cmsannotation" annotationid="Capital expenditure at an all-time high, funded by strong cash flows" comment="subhead" text="Capital expenditure at an all-time high, funded by strong cash flows">Capital expenditure at an all-time high, funded by strong cash flows</cmsannotation> While the topline and bottomline growth was ahead of estimates, RIL’s capital expenditure also rose to an all-time high of ₹1.4 lakh crore due to acquisition of 5G spectrum and rollout of 5G services. This also led to a 43% YoY rise in depreciation to ₹11,456, which impacted the company’s bottomline. However, brokerages do not seem to be concerned even as the capex and EBITDA both came in at ₹1.4 lakh crore for the whole year. “Capex rose to $17.6 billion in FY23 but this was fully funded by cash profits,” said a report by Goldman Sachs, adding that this gives a “comforting leverage guidance”. Brokerages also maintain that going forward, Jio-related capital expenditure will climb down since the company has front-loaded it as it seeks to complete the pan-India rollout of 5G by the end of 2023. <cmsannotation type="cmsannotation" annotationid="Brokerages see a 25% upside in the next 12 months" comment="subhead" text="Brokerages see a 25% upside in the next 12 months">Brokerages see a 25% upside in the next 12 months</cmsannotation> Analysts believe that RIL’s consumer business will be a key growth driver going forward. A rise in gross refining margins will be key for growth in the company’s O2C earnings, and also help it finance the new energy ambitions while maintaining debt at comfortable levels. Brokerages maintain their bullish outlook on the company, with an average target price of ₹2,954 in the next 12 months, presenting an upside of around 25%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage house </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jefferies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,125 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overweight </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,960 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Goldman Sachs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,890 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Institutional Equities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,800 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JM Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,900 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,800 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nuvama Institutional Equities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,205 </td></tr></tbody><tbody></tbody><tbody></tbody></table> Source: Brokerages <cmsannotation type="cmsannotation" annotationid="Retail business steady, but softness observed in certain segments" comment="subhead" text="Retail business steady, but softness observed in certain segments">Retail business steady, but softness observed in certain segments</cmsannotation> <keyword id="58448" type="General" weightage="20" keywordseo="Reliance-Retail" source="Orion">Reliance Retail</keyword> <a href="https://www.businessinsider.in/business/corporates/news/reliance-retails-q4-net-profit-grows-12-9-on-the-back-of-rapid-expansion/articleshow/99673732.cms">posted</a> a 12.9% growth in net profit to ₹2,415 crore in the March quarter aided by growing footfalls, new store additions and high conversions. “In retail, with very sharp retail space growth, the rising share of new commerce and FMCG forays, growth will likely sustain at a fast clip,” said a report by Kotak Institutional Equities. In FY23, the company opened over 3,300 stores taking the total count to 18,040 stores. However, as they added more stores and warehousing space, depreciation went up by 91% to ₹1,188 crore during the quarter along with finance costs that shot up by 148%. <keyword id="58448" type="General" weightage="20" keywordseo="Reliance-Retail" source="Orion">Reliance Retail</keyword> is yet to fully ramp-up its operations from stores absorbed from Future Retail, which has led to its per square feet revenue to remain below the pre-Covid levels, said Jefferies. While Reliance Retail sounded excited about its foray into FMCG and beauty space, high capex due to expansion would have resulted in higher debt levels, say brokerages. “While we like Reliance Retail’s positioning in Indian retail, we remain perplexed with poor disclosures which leaves a lot to imagination,” it said. <cmsannotation type="cmsannotation" annotationid="Jio: Adding subscribers but with low yields" comment="subhead" text="Jio: Adding subscribers but with low yields">Jio: Adding subscribers but with low yields</cmsannotation> Reliance Jio <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-net-profit-grows-1-7-sequentially-at-4716-crore-in-q4-fy23/articleshow/99674353.cms">reported</a> a net profit growth of 1.7% sequentially to ₹4,716 crore in March quarter from ₹4,638 crore last quarter. Its revenue from operations also grew marginally by 1.7% sequentially to ₹23,394 crore as compared to ₹22,998 crore in the previous quarter. “Although subscriber additions were strong and higher than expected, revenue growth was sluggish, due to disappointing ARPU growth (flat QoQ). We believe lower ARPU growth could be attributed to Jio doing away with most of the low end users and absence of any direct tariff hike in the quarter,” said Nuvama Institutional Equities in a report. The telecom business is currently focused on 5G roll out across India by December 2023. So far Jio has extended coverage of its 5G services to over 2,300 cities/towns across India. “In Jio, the near-term focus will be 5G and accelerated fixed broadband rollouts. As customer engagement picks up, we believe there is a case for tariff hike, but we conservatively assume tariff hike only after 2024 general elections,” said a report by Kotak Institutional Equities. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/-some-sectors-will-benefit-from-lower-energy-prices-in-fy24-a-balasubramanian/articleshow/99722850.cms">Earnings to remain volatile in FY24, but some sectors will benefit from lower energy prices, says Aditya Birla Sun Life MF’s CEO A Balasubramanian</a> <a href="https://www.businessinsider.in/finance/banks/news/yes-bank-drops-nearly-5-as-high-provisions-drag-down-its-q4-net-profit/articleshow/99721698.cms">Yes Bank stock slips 5% as high provisions drag down its Q4 net profit</a> <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-q4-net-profit-of-19299-crore-beats-analyst-expectations-driven-by-retail/articleshow/99673940.cms">RIL’s Q4 net profit of ₹19,299 crore beats analyst expectations, driven by retail</a>

RIL’s Q4 performance keeps brokerages bullish on the company’s prospects

Continuing healthy demand from construction, real estate and automobile sectors will help the paint sector register a 10-12 per cent <keyword id="45663" type="General" weightage="20" keywordseo="revenue" source="Orion">revenue</keyword> growth this fiscal against an 18 per cent estimated rise in the just-concluded fiscal, according to a report. Volume expansion and the resultant cash generation will help <keyword id="583484" type="General" weightage="20" keywordseo="Paint-companies" source="Orion">paint companies</keyword> maintain healthy balance sheets, which will also buffer credit profiles despite the rising capex, <keyword id="6359483" type="General" weightage="100" keywordseo="crisil" source="Orion">Crisil</keyword> said in a report on Wednesday. The top five companies have announced Rs 12,000 crore capex in fiscal 2023 and 2024 on the back of Rs 7,000 crore they incurred in the previous four fiscals. New players are expected to add nearly one-third of the total existing capacity of 4.2 billion litres by fiscal 2025-end, the report added. Paint companies are likely to close <keyword id="4131553" type="General" weightage="20" keywordseo="FY23" source="Orion">FY23</keyword> with a robust 18 per cent revenue growth, primarily led by higher realisations on the back of a 6 per cent price hike during the year, along with the full impact of a 20 per cent price hike effected in the third quarter of FY22. Along with healthy volume growth, moderating crude-linked input prices will ensure operating margins to remain stable at 15-16 per cent in fiscal 2024, almost similar to the last fiscal, the agency said in the report based on the five top companies that account for 90 per cent of the Rs 65,000-crore industry or 4.2 billion litres annual capacity now. The report also said their near debt-free balance sheets will support credit risk profiles despite all major paint companies being on an aggressive capex spree. The domestic paints sector also comprises the decorative segment, which commands 80 per cent of the market. According to Anuj Sethi, a senior director at the agency, paints demand normally grows at 1.6x-2x of GDP. Decorative paints are likely to see a revenue increase of 11-12 per cent this fiscal, driven by increasing renovation/construction activity and a greater preference for branded products. On the other hand, industrial paints will see 8-9 per cent revenue growth on the back of higher government spending on infrastructure and steady demand from the automotive segment, Sethi added. Since the key raw materials are crude-linked derivatives, the 30 per cent fall in <keyword id="45185" type="General" weightage="20" keywordseo="crude-oil" source="Orion">crude oil</keyword> prices from a high of USD 115 per barrel in June-July 2022 to USD 85 per barrel now will help boost the operating margins. But this will be largely offset by higher selling expenses due to aggressive sales push and increase in ad spend by industry leaders to counter competition from new entrants. Another margin risk is the falling rupee, which the agency sees trending at 82-83 a dollar, up from 80.2 in FY2023, impacting the cost of imported materials, which account for a third of overall their raw material requirements. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/google-chrome-alternatives-for-privacy-conscious-ios-and-android-users/articleshow/99614789.cms">These web browsers are the best alternatives to Google Chrome for privacy-conscious iOS and Android users</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/condom-maker-mankind-pharmas-4326-crore-ipo-to-open-next-week-on-april-25/articleshow/99614288.cms">Condom maker Mankind Pharma’s ₹4,326 crore IPO to open next week on April 25</a>

You Searched For "capex in FY23" and got 2 results

RIL’s Q4 performance keeps brokerages bullish on the company’s prospects

Rounak

Bhakti

Paint companies to log 10-12% growth in revenue this fiscal: Crisil

PTI

Popular Keywords

Buying Guides