The quarterly earnings of is always on the watchlist of D-Street traders. But the stock has never seen major buying either prior to the earnings or post announcement of results, if historical data is anything to go by.
Share performance pre- and post earnings for the last 23 quarters show that
has gained a maximum 3% prior to the results, while it has been a laggard post earnings.
In the past 23 quarters post earnings, shares of RIL have fallen 21 times.
The maximum fall the stock has seen is over 8% post the earnings for July-September of FY21, data showed.
History could repeat and shares of RIL may go downhill, as the Q2 earnings released on Friday have failed to impress the investors.
The oil-to-telecom conglomerate reported a year-on-year fall of about 1% in the consolidated net profit, against expectations of a double-digit growth, due to weak performance of the mainstay oil-to-chemicals (O2C) business.
At least 6 brokerage houses have cut their price target for shares of RIL due to conservative earnings outlook for the O2C business, with concerns around windfall taxes, weak demand and margins.
In the run-up to the earnings, shares of RIL have gained more than 4% in the week gone by and even hit a one-month high of Rs 2,527.85. The weak earnings are likely to trigger profit booking.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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