Reliance Industries |
Concerns overdone, attractive BUY |
BUY
CMP: Rs 846 Target Price: Rs 1,119
n Negatives like declining KG D6 gas production, lack of clarity on cash utilization and CAG report findings already priced in. See limited downsides from current levels
n Any positive outcome emerging from the RIL-BP tie up (in the form of increased production) or a suitable acquisition can boost sentiment and trigger a re-rating
n Refining business outlook also turning positive owing to the current scenario being favorable for complex refineries like RIL
n Valuation attractive at 10.4x FY13E and 5.9xEV/EBITDA. Favorable risk reward ratio coupled with stable/improving financials warrant a Buy on RIL. Initiate coverage with TP of Rs.1,119
Regards,
Dhaval Joshi |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : dhaval...@emkayglobal.com |
Board No. : +91-22-66121212 | Extn. : 282 | DID : 66121282 | Mob : +919920871839 | |
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