Nalanda Securities is bullish on Reliance Industries recommended buy rating on the stock with a target price of Rs 1638 in its research report dated April 21, 2019.
Nalanda Securities' research report on Reliance Industries
The company’s net sales grew 18.6% y-o-y and declined by 11.3% q-o-q to INR 1386590 million in Q4FY19. EBITDA grew by 12.7% y-o-y and declined by 2.3% q-o-q to INR 208320 million in Q4FY19. EBITDA Margins stood at 15.0% in Q4FY19 as against 15.8% in Q4FY18 and 13.6% in Q3FY19. Employee expense grew by 35.2% y-o-y to INR 33450 million owing to expansion of petrochemical unit, newly installed ROGC refinery and increase in retail branches. Finance cost grew by 90.8% y-o-y & 18.8% q-o-q to INR 48950 million in Q4FY19. PBT grew by 4.5% y-o-y & declined by 4.1% q-o-q to INR 138570 million in Q4FY19. Reported PAT grew 10.1% y-o-y and marginally by 0.5% q-o-q to INR 104270 million in Q4FY19. PAT margins stood at 7.5% in Q4FY19 as compared to 8.1% in Q4FY18 and 6.6% in Q3FY19.
We value the company using SOTP valuation, thereby, valuing refining & petchem business at 7.0x FY21E EBITDA & telecom at 7.0x FY21E EBIDTA to arrive at a target price of INR 1638/share indicating 18.2% upside. We strongly recommend to add the stock on dips with an investment horizon of 1 year.
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.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.