Our SOTP target for RIL is Rs 971/sh based on Sep-19 earnings (6.5x EV/e for standalone refining, 8x EV/e for Chemicals, Rs 16/sh for domestic E&P, 1x EV/invested capital for Shale/Retail and 0.85x net fixed assets in Telecom. Upgrade to BUY. RILs standalone numbers continued to impress, led by strong GRM (USD 12/bbl) and higher Petchem margins. Q2 EBITDA came in at Rs 130bn (+23% YoY), on account of higher throughput, favourable product cracks and better Petchem margins. Lower other income, higher interest cost and taxes partially offset growth, and PAT stood at Rs 83bn (+7.3% YoY). Strong GRMs should continue, as a delay in the addition of net refining capacity had led to a lag in supply of Petroleum products.