Moneycontrol PRO
Contest Alert:2 days left to win Amazon vouchers worth Rs 5000. Take the MCPRO Quiz today to grab yours!

RIL firing on all cylinders; have target price Rs 1174: Jal Irani of Edelweiss Fin

The house has a further hiked its target price on RIL to Rs 1174 and also hiked earnings number for March'18 by 9 percent, Jal Irani of Edelweiss Financial Services.

January 22, 2018 / 10:43 AM IST

Reliance Industries posted a strong set of third quarter earnings. Jal Irani, Edelweiss Financial Services says Reliance is now firing on all cylinders. The December quarter was just a trailer of what is going to come going forward, he added.

The oil-to-telecom major reported consolidated profit growth of 16.2 percent QoQ (25.1 percent year-on-year) at Rs 9,423 crore for October-December quarter, driven by petrochemical and Jio businesses.

He said not just retail and telecom but even the USD 20 billion Petchem refining projects are likely to be highly profitable.

According to him, the operation leverage of all these businesses are beginning to kick. The management has guided for significant uptick in return on capital (ROC) between mid to high teens from the current levels of 10 percent.

Therefore not only will the profit growth be significant but profitability will also see huge uptick going forward, said Irani.

Close
The house has a further hiked its target price on RIL to Rs 1174 and also hiked earnings number for March'18 by 9 percent.
CNBC-TV18
first published: Jan 22, 2018 10:29 am
Sections
ISO 27001 - BSI Assurance Mark