(Reuters) -Shares of Reliance Industries hit their lowest in a month on Monday as the quarterly results of its energy and retail segments missed analysts’ expectations.
The shares fell as much as 3.6%, marking their worst intraday drop since April 4, when U.S. President Donald Trump’s reciprocal tariffs triggered a global market sell-off. They closed 3.2% lower at 1,428.60 rupees, the lowest since June 20.
The conglomerate is one of the highest-weighted stocks in the benchmark Nifty 50 index, which settled 0.5% higher.
On Friday, Reliance posted a 78% surge in first-quarter profit, helped by a jump in income from the sale of its stake in Asian Paints.
However, earnings before interest, taxes, depreciation, and amortization in its key oil-to-chemicals and retail segments came in below several analysts’ expectations.
The company said planned shutdowns at its Jamnagar refinery in the western state of Gujarat hurt refining operations, while seasonal weakness in consumer electronics weighed on retail growth.
“Reliance’s share price could see a near-term moderation post this result print,” Macquarie analysts said in a note.
The shares have risen about 18% so far this year, compared with a 6% gain in the Nifty 50.
Despite the mixed results, at least 10 analysts raised their price targets on the stock, with the median price target rising to 1,640 rupees from 1,565 rupees a month ago, according to data compiled by LSEG.
Moreover, analysts expect a recovery in gross refinery margins to drive oil-to-chemicals segment growth this year, and also see strong growth in the retail and telecom units.
“Retail and Jio are likely to accelerate, and the new energy ecosystem is expected to fully operationalise in four to six quarters, with partnerships and a self-funded model in a few years,” Emkay analysts said in a note.
(Reporting by Sethuraman NR and Kashish Tandon; Editing by Janane Venkatraman and Mrigank Dhaniwala)
