Reliance Industries Faces Stock Tumble as Weak Q1 Results Lead to Trimmed Earnings Forecasts; Suzlon Energy Shares Hit Record as Q1 Profit Jumps Threefold; HUL Shares Hit 52-Week High Ahead of First-Quarter Earnings; BHEL Reports Slightly Bigger Loss on Higher Expenses Despite Revenue Gains; Dr. Lal Pathlabs Q1 Results Review - Lack Of Volume Traction Keeps Us Away: Yes Securities

Reliance Industries Ltd. reported a weak first quarter performance, leading to brokerages flagging downside risk to the company's earnings forecasts. The company's key oil-to-chemical business saw a sharp margin decline, partially offset by slightly better petchem spreads and ethane cracker economics. Citi has lowered Reliance Industries' fiscal 2025 and 2026 earnings per share forecast by 6% and 3% respectively. Macquarie and Nomura have also lowered their earnings forecast for the current year. RIL's net income of Rs 15,100 crore was 2% below brokerage estimates. Consolidated net debt moderated sequentially to Rs 1.12 lakh. Capex rose to Rs 28,800 crore compared to Rs 23,200 crore in the previous quarter. The telecom operations of the conglomerate will benefit from Jio's recent tariff hikes in the second quarter [6f5fc2a4].

Shares of Reliance Industries Ltd. tumbled over 3% on Monday after its consolidated net profit fell 18% sequentially in the first quarter of the current financial year. The oil-to-telecom conglomerate posted a profit of Rs 17,445 crore in the April–June period, in line with a consensus estimate of Rs 17,654.9 crore by analysts tracked by Bloomberg. Analysts have trimmed the earnings forecasts, citing the weak first-quarter performance. On the NSE, RIL's stock fell as much as 2.97% during the day to Rs 3,017.9 apiece, the lowest since June 27. The share price has risen 21.6% in the last 12 months and 17.5% on a year-to-date basis. Twenty-seven out of the 35 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data [e1f3e3f9].

Shares of Suzlon Energy Ltd. hit an upper circuit limit of 5% and an all-time high on Tuesday after its consolidated net profit jumped threefold in the first quarter of the current financial year. The renewable energy firm posted a bottom line of Rs 302 crore in the quarter ended June, beating the consensus estimate of Rs 243.7 crore by analysts tracked by Bloomberg. Revenue increased by 50% to Rs 2,022 crore, Ebitda increased by 78% to Rs 367 crore, Ebitda margin was at 18.2%, and net profit increased by 200% to Rs 302 crore. Suzlon Energy's largest-ever order book of 3.8 gigawatts gives it great visibility for the future. The stock rose as much as 5% in early trade to Rs 57.83 apiece on the NSE. The share price has risen 50.68% on a year-to-date basis and 203.85% in the last 12 months. All five analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data [db6ad734].

Shares of Hindustan Unilever Ltd. hit a 52-week high on Tuesday ahead of the release of its first-quarter earnings. The consumer products company is expected to report a net profit of Rs 2,601 crore for the quarter ending June. Volume grew 3% over a year ago in Q1. The stock has risen 6% in the last 12 months and 2.7% on a year-to-date basis. Twenty-five out of the 41 analysts tracking the company have a 'buy' rating on the stock. The average of 12-month analyst price targets implies a potential downside of 6% [6eb855fe].

Bharat Heavy Electricals Limited (BHEL) reported a net loss of 2.13 billion rupees ($25.44 million) for the quarter ended June 30, 2024, compared to a net loss of 2.12 billion rupees a year ago. Total expenses climbed 9% to 58.75 billion rupees, driven by increased costs of materials and services. Revenue from operations rose nearly 10% to 54.85 billion rupees, fueled by a 4% rise in the power segment and a 30% surge in the industrial business. Rising costs put a damper on the outlook, with investor concerns over rising costs dampening profit margins. Competitors like Tata Power and Siemens are set to release their results next month, potentially highlighting industry-wide challenges and opportunities [55d9c178].

Dr. Lal Pathlabs reported lack of volume traction in its Q1 results, leading to Yes Securities staying away from the stock. Despite Suburban operating profit margin at 14% and penetration into tier-III and four towns, the lack of volume traction is a concern. The brokerage notes that the margin continues to hold at a higher level for Dr. Lal Pathlabs [3a107fd8].