Reliance Industries Ltd. share price target

RIL's standalone PAT at Rs 82.7 bn was marginally lower than our estimate of Rs 84.5 bn, as strong operational performance by cyclical businesses was offset by higher interest and tax charges. RJio surprised positively by reporting positive EBITDA and EBIT of Rs 14.4 bn (~23.5% margin)

Revenue grew by 9.6% to Rs. 91481.0 Cr in Q2FY18 when compared to the previous quarter Revenue grew by 9.6% to Rs. 91481.0 Cr in Q2FY18 when compared to the previous quarter

Reliance Industries Limited (RIL) reported less-than-expected profit in the JulySeptember quarter as its refining margin lagged estimates. RIL has reported 12% increase in consolidated net profit to Rs 8109 crore in Q2FY'18 compared to Q2FY'17 which was higher than the estimates while net sales were up 16% to Rs 95085 crore. Increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses. Exports (including deemed exports) from India refining and petrochemical operations were higher by 10.2% at Rs 41,560 crore as against Rs 37,717...

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.

Standalone EBITDA in line; RJio delivers +ve EBIT from 1st quarter itself Reliance Industries' (RIL) 2QFY18 standalone EBITDA rose 23% YoY (+12% QoQ) to INR129.8b, largely in line with our estimate of INR126b. PAT rose 7% YoY (+1% QoQ) to INR82.6b, below our estimate of INR88.2b, due to higher interest expense of INR13b (est. of INR9.4b) and a higher tax rate at 27.9% v/s 22% in 1QFY18 and 24% in 2QFY17. Interest expense was higher due to forex loss of INR4.5b. GRM of USD12/bbl was below our estimate of USD12.6, while refining throughput of...

Raise estimates; maintain BUY: We increase FY18/19E EPS by ~8% to factor in (a) USD 0.5/bl hike in GRM, (b) benefits of ethane imports (USD 250 mn). Revised TP stands at Rs 1,785 (Rs 1,545 earlier). At CMP, the stock trades at 15x FY19E EPS of Rs 105 and 14x FY17E EPS of Rs 116.

Revenue fell by 1.59% to Rs. 83471.0 Cr in Q1FY18 when compared to the previous quarter Revenue fell by 1.59% to Rs. 83471.0 Cr in Q1FY18 when compared to the previous quarter

RIL in FY17 continued its focus on downstream businesses and rollout of telecom business, which together accounted for 85% of Rs 1.1 tn total capex. This was funded through operating cash flow (Rs 428 bn, up 10% YoY), debt (Rs 295 bn), supplier's credit & deferred payment (Rs 188 bn) and internal ..

Capex cycle ends: RIL aims to fully commission all downstream projects by Dec '17, and realize full benefit of expansion from Q4FY18.We raise our TP to Rs 1,600 (Rs 1,330 earlier) to reflect (a) higher EV/E of 7x (6.5x earlier) given our conservative margin assumptions, and (b) rollover of TP to M..