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Last Updated : Dec 13, 2019 11:47 AM IST | Source:

Reliance Industries share price gains as CLSA maintains buy with target above Rs 2,000

The closure of $35 billion deals and the start of pet coke gasification are the triggers, CLSA has said.

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Reliance Industries share price was up 1.5 percent in the morning trade on December 13 after broking house CLSA maintained a buy rating with a target at Rs 2,010 per share.

According to CLSA, despite being a growth leader, the company trades near the bottom range of PE & PEG and it is the most attractively priced largecap growth stock in India.

It is an attractive GARP bet among the largecaps and ranks second only to IndusInd Bank on the basis of FY19-22e PBT growth, it added.


On FY21 PE and three-year growth shows that despite being the growth leader, the company's PE is higher than only four other names and at a 49 percent discount to the average, it added.

The company ranked seventh in the CLSA's big caps (ex China-A shares) with a market cap of above $30 billion. Out of these 12 companies excluding financials, only three trade at a cheaper PE than RIL.

The company’s 45 percent of FY22 EBITDA is expected to come from telecom and retail. Its growth leader position across Asia and Indian largecap segment, aided by 80 percent of incremental EBITDA from telecom and retail, could drive further re-rating.

The closure of $35 billion deals and the start of pet coke gasification are the triggers, CLSA said.

At 0936 hours, Reliance Industries was quoting at Rs 1,589.35, up Rs 21.85, or 1.39 percent.

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

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First Published on Dec 13, 2019 10:03 am
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