The majority of the analysts who track index heavyweight Reliance Industries Ltd. continued to maintain their buy recommendation on the stock. Analysts have cited a strong O2C performance, disciplined capital allocation and favourable valuations behind their stance.

The record performance for the quarter was led by a rebound in O2C and continuing growth in the consumer business. For the full year, the company reported a net profit of Rs 74,088 crore, a growth of 14 percent year-on-year.32 out of the 37 analysts who track the company have a buy recommendation on the stock.Here’s what analysts had to say post-Reliance Industries’ earnings:

was pleased with the company’s “disciplined capital allocation and maintaining its net debt-EBITDA below 1 times. The firm believes that this should assuage investor concerns about leverage. The O2C, along with the exploration and production businesses, will drive earnings in the current financial year. JPMorgan is overweight on Reliance Industries with a price target of Rs 2,960. However, it has cited relentless FII selling as a key near-term headwind for the stock.

Reliance’s March-quarter net profit was 9 percent ahead of CLSA’s expectations. It has raised its financial year 2024-2025 earnings per share (EPS) estimates by 3-4 percent. CLSA also has a buy rating on Reliance Industries with a price target of Rs 2,970.

Even as net debt for the company increased slightly due to Jio and Retail capex, the management allayed leverage concerns, Jefferies wrote in their post-earnings note. It expects the recent softness in refining margin to reverse with a healthy US driving season and the reopening in China. The brokerage believes that Jio generating healthy free cash flow with elevated 5G capex can open up the next leg of growth. Jefferies says valuations are favourable, and maintains a buy rating with a price target of Rs 3,125.

Kotak Institutional Equities has also maintained its buy rating on the stock with a price target of Rs 2,800. The brokerage believes that net debt is likely to have peaked and that strong petrochemical recovery should further cushion O2C earnings.

Goldman Sachs has maintained its buy recommendation on the stock with a price target of Rs 2,890. Most of the sequential earnings growth was led by the O2C business. It further said that the retail business continued to gain market share due to rapid store expansion.