Buy Reliance Industries: Equity99

Sumit Bilgaiyan

Equity99

Reliance Industries is country’s largest private sector company having market leader in Refining, Petro chemicals, Oil and gas, Digital, Retail and Telecom sector. Company has reported excellent results for Q2FY19, income has improved by 54.5% YoY to Rs 156291 crore while PAT increased by 17.4% to Rs 9516 crore as against Rs 8109 crore. EBIT grew by 24.9% to Rs 22359 crore during Q2FY19.

For H1FY19, its sales grew 55.4% to Rs 297990 crore, EBIT grew by 37.5% to Rs 44808 crore and PAT grew by 17.6% to Rs 18975 crore.

During Q2FY19, JIO has reported PAT of Rs 681 crore and achieved ARPU of Rs 131.7 per subscriber which is highest in telecom industry. At CMP, the stock is trading at P/E of just 17.6x. With strong Q2 numbers and reasonable valuation, we are recommending a buy in staggered manner for medium to long term.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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