#A3RT ``TRUST AND TRADE``

RIL’s O2C business rose to Rs 14,064 crore in the December quarter, despite a planned shutdown of key units and a challenging margin environment.

Morgan Stanley is bullish on RIL following earnings beat due to robust performance in gas production. The report highlighted RIL’s completion of the 5G rollout as a notable factor. The international brokerage has issued an ‘overweight’ call on the stock with a target price of Rs 2,821 per share.

CLSA noted that RIL’s EBITDA/EBIT remains in line. Notably, there is an indication of operating leverage as Retail EBITDA per square foot rose for the second straight quarter, it said. Operating leverage measures how revenue growth translates into growth in operating income.

Any surge in subscribers resulting from wireless broadband would be a significant and unexpected development, the brokerage said while putting a ‘buy’ rating on RIL with a target price of Rs 3,060 per share.

@arbindtiwariT TARGET FOR #Reliance 3250