Get App
Last Updated : Apr 23, 2019 10:19 AM IST | Source:

Buy Reliance Industries; target of Rs 1638: Nalanda Securities

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.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

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 are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Apr 22, 2019 04:19 pm
Follow us on
Available On
PCI DSS Compliant