Moneycontrol
Last Updated : May 14, 2018 07:17 PM IST | Source: Moneycontrol.com

Buy Reliance Industries; target of Rs 1178: HDFC Securities

HDFC Securities is bullish on Reliance Industries has recommended buy rating on the stock with a target price of Rs 1178 in its research report dated May 03, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities's research report on Reliance Industries


RIL’s  standalone  numbers  continued  to  impress,  led  by higher Petchem volumes and margins. Petchem production volumes were up 10% QoQ and 42% YoY to  8.8  mT  owing  to  ROGC  ramp up. EBIT/kg of sales volumes stood at Rs 17.87/kg (Rs 17/kg in 3Q, 13.2/kg in 4QFY17). EBIT margin was up 356bps YoY to  17.2%.  Q4  EBITDA  came  in at Rs 134.25bn (+19% YoY). Higher interest cost, depreciation charges and taxes partially offset growth, and PAT stood at Rs 86.97bn (+6.7% YoY).


Outlook


Our SOTP-based target for RIL is Rs 1,178/sh based  on  Mar-20  earnings (6.5x EV/e for standalone refining, 8x EV/e for petchem, Rs 19/sh for domestic E&P, 1x EV/invested capital for Shale/Retail and  10x  EV/e  for  Telecom  (Rs  420/sh). Maintain BUY. Refer our note on Reliance Jio for Telecom.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on May 14, 2018 07:17 pm
Loading...
Sections
Follow us on
Available On