In an interview to CNBC-TV18, Harshvardhan Dole of IIFL and Jal Irani, Senior VP-Institutional Equities & Research Analyst at Edelweiss Securities shared their views and readings on Q2 numbers of Reliance Industries.
Dole said that considering the fact that Jio has massively surprised the street, will start looking forward to the bull case. Therefore, there is 30-40 percent upside if the stock were to price in the bull case for Jio.
He further said that there is already optimism built-in in terms of refining and petrochemicals. A marginal upgrade could come through in the refining side but huge value unlocking could happen on account of Jio where one could expect 30-40 percent upside if one were to believe the bull case scenario, he added.
"We have hiked our target price by another 9 percent to Rs 1,104. We have essentially hiked our earnings forecast for FY19 by as much as 20 percent which puts us 26 percent above consensus. In fact at these earnings level, we believe now Reliance's earnings will no longer double in five years but potentially in three years it will double," said Irani of Edelweiss.
Watch accompanying video for more details.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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