Market analysts think there is nothing to worry about Reliance Industries despite an 8 per cent drop in its share price on Friday. The company's shares fell after the government imposed taxes on the export of petrol, diesel and jet fuel ATF shipped overseas by Indian firms.
The government levied a tax of 6 per litre on petrol and aviation turbine fuel and 13 per litre on diesel exports. The step is intended to meet the demand of the domestic market.
According to IDBI Capital Market, investors should wait for a while before investing in Reliance Industries shares. There may be another 5 per cent fall in the scrip. He said that the level of Rs 2,200 is a good value for buying RIL shares.
Even after paying taxes, RIL will benefit. It will take a hit on margins. Gross refining margins are very high at present, as they are importing from Russia at a discounted price and exporting at a premium. The company may see windfall profit in the upcoming quarters, he said.
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The energy-to-telecommunication behemoth traded Rs 213 down to Rs 2,381 in the afternoon trade at around 2.45 pm IST.Reliance Industries reported a consolidated EBITDA of Rs 13,241 crore in Q 4 from oil to chemical business against a total EBITDA of 33,493 crore, indicating a contribution of over 42 per cent from the segment.
Reliance BP Mobility Limited, aviation fuel and bulk wholesale marketing are some of the businesses that are involved in refining, petrochemicals, fuel retailing, and bulk wholesale marketing.
Sharekhan said Friday's fall creates a good entry point for investors because of Sanjeev Hota, head of research. I think the total impact on EBITDA will be around 24,000 crore annually. I don't think there will be any cut in earnings estimates for Reliance Industries due to robust GRMs. The scrip will bounce back soon. Santosh Meena, head of research, said Reliance was firing on all cylinders but now there is a break in its refinery business as the commodity cycle is reversing, but other verticals have strong growth potential, according to a report by Swastika Investmart. Some investors will look for buying opportunities in this correction ahead of the AGM in July because there is a buzz of major announcements like a path for a separate listing of Jio and Retail businesses. Technically, investors should watch out for the Rs 2,400 -- 2,350 demand zone if it manages to hold this area, because it may go towards the Rs 2,200 level if it falls below the Rs 2,350 level. On the upside, Rs 2,600 is a critical hurdle. He said that we can expect a fresh expansion phase.
In week 1 there were 66 cr at the box office.