Buy Reliance Industries; target of Rs 1110: Sharekhan

Sharekhan's research report on Reliance Industries

Largely in-line operating profit; PAT marginally higher than estimates due to  higher-than-expected other income: Reliance  Industries Limited (RIL) reported largely in-line  standalone operating profit of Rs. 13,425 crore  in Q4FY2018 as marginal beat in petrochemical EBIT margin at 17.2% and higher-than-expected  petrochemical production at 8.8 mmt (up 42%  y-o-y) were offset by lower-than-expected  gross refining margin (GRM) at $11/bbl (vs. our  estimate of $11.3/bbl).

Outlook

We have fine tuned our FY2019 and FY2020 earnings estimates to factor in higher subscriber base and marginally lower APRU for the telecom business. We maintain our Buy rating on RIL with unchanged price target (PT) of Rs. 1,110, as we remain positive on the earnings growth momentum. For all recommendations report, click here

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