JM Financial gives ‘buy’ call for Reliance shares, expects 24 pc returns in a year

New Delhi [India], April 24 (ANI): Financial services firm JM Financial has given a ‘buy’ recommendation to potential investors for Reliance Industries’ shares after the Indian conglomerate posted healthy January-March quarter earnings.

The financial services firm sees about a 24 per cent return on investment from Reliance stocks over the next 12 months. The total expected return includes returns from dividends.
The Reliance shares are currently trading at Rs 2,359. Since the start of 2023, it has cumulatively declined over 8 per cent.

Coming to its earnings, Reliance Industries (RIL) has posted an 18.3 per cent jump in its profit after tax to Rs 21,327 crore for the quarter that ended March 31, 2023, against Rs 18,021 crore in the year-ago period.

According to a statement from the conglomerate, gross revenue went up 2.8 per cent to Rs 239,082 crore in the reviewed quarter, against Rs 232,539 crore.

The company said it achieved a record annual consolidated profit after tax at Rs 74,088 crore in FY23 against Rs 65,009 crore in FY22, which is up 14 per cent year-on-year.

Further JM Financial said it expects Jio’s Average Revenue Per User (ARPU) to rise at 10 per cent CAGR during financial year 23-28 given the current consolidation structure in the overall telecom industry.

“Further, strong growth momentum continues in the company’s retail business as RIL is driving omni-channel capabilities across segments,” it added.