Hold Reliance Ind; target of Rs 2150: Anand Rathi

Reliance BSE | NSE 10/02/12 Are Mutual Funds betting on Reliance?

Anand Rathi Securities has recommended hold rating on Reliance Industries with a target of Rs 2150, in its November 24, 2008.

"We see LyondellBasell EV at USD 32bn, in best case. Based on a best case EBITDA scenario of US$4.8bn (in 2007) and a best case EV/EBITDA of 6.5x, we arrive at an EV of USD 32 billion for LyondellBasell. Based on a multi-scenario EBITDA projection and 9M 2009 performance, the EV could be about USD 11-15 billion. Too early to debate acquisition, though. Any acquisition of LB assets would also need to consider the potential jump in scale of operations, across many continents, for RIL to manage, and high labor and environmental costs associated with operations. We retain a Hold and value RIL at Rs 2,150 per share based on a sum of parts."

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