Reliance Industries Ltd. share price target

Robust operating performance in Q1; positive outlook Reliance Industries (RIL) came out with yet another strong result in Q1FY17 where revenue was below our expectation while EBITDA and net profit was ahead of our expectation. On standalone basis, revenue decreased 19% YoY to Rs535 bn driven by 26% fall in crude oil prices and lower petchem prices partially offset by higher petrochemicals volume. The company's crude throughput grew 1.2% YoY to 16.8mmt in Q1FY17 while GRM came at US$11.5/bbl (IDBIest US$10.2/bbl) compared to US$10.4/bbl last year same quarter. Higher GRM was driven by a) gain of ~US$2/bbl including all cracks and inventory gain, b) strong middle distillates, c) more...

1QFY17 saw RIL yet again proving its operational mettle despite weak global GRMs and macros. It achieved its highest ever quarterly PAT of Rs 75bn (+19% YoY), led by strong GRM of US$ 11.5/bbl and robust polymer margins.Petroleum product demand persists, driven by low crude prices. However, we see limited room for a further rise in margins.A sequential decline is likely. HDFC Securities think RIL will nevertheless manage to earn industry beating margins courtesy its superior RM sourcing and increasingly efficient operations.They maintain SOTP based target of Rs 1,155/sh, based on FY18E. Maintain BUY.

Trendlyne has 10 reports on RELIANCE updated in the last year from 4 brokers with an average target of Rs 1141. Brokers have a rating for RELIANCE with 2 price upgrades in past 6 months and 3 price upgrades,1 upgrades and 1 downgrades in past 1 Year.

Top takeaways from Q1FY17 :Consolidated PAT of Rs 71.1bn, 5% above our estimate. Numbers not fully comparable due to IndAS impact, though segment?wise, refining was a major +ve surprise 9 GRM rose to US$ 11.5/bbl qoq from US$ 10.8, despite ~US$ 3/bbl decline in Singapore margins (estimated US$ 10/bbl). ~US$ 2 accrued from spread hedging and inventory gains. Core margin was still a laudable US$ 4.5/bbl premium to Singapore. Phillip Capital lower their deprecation, increase other income and tax rate (to 27%) estimates, though PAT estimates and target price remain unchanged.They maintain positive view and Buy rating on RIL with a target price of Rs.1,160, as the company’s major downstream capex cycle comes to an end with key value?added projects to drive earnings from FY18.

Trendlyne has 10 reports on RELIANCE updated in the last year from 4 brokers with an average target of Rs 1141. Brokers have a rating for RELIANCE with 2 price upgrades in past 6 months and 3 price upgrades,1 upgrades and 1 downgrades in past 1 Year.

Reliance Industries’ (RIL) 1QFY17 standalone EBITDA/PAT were boosted by surprisingly high GRMs of USD11.5/bbl (includes inventory gain of USD2/bbl). Adj. GRM were in line at USD9.5/bbl. EBITDA stood at INR108b (est INR96b; +16% YoY; flat QoQ) and PAT stood at INR75.5b (est INR65b; +19% YoY; largely flat QoQ). Management guided that core projects are largely on track with minor delays (believe 100% FY18 utilization difficult). Jio test subscribers reached 1.5m users; commercial launch will be soon but still did not give any specific timeline. We change our FY17/FY18 EPS by +4%/-2% to factor lower depletion and lower utilization in new core project. FY17 earnings will be function of GRM trend, while telecom launch and its success will drive the stock price movement.. On FY18E basis, the stock trades at 9.3x adj. SA EPS of INR120 and EV/EBITDA of 5.9x. Motilal Oswal roll over our SOTP-based target price to FY18 basis to INR1,129/share.

Trendlyne has 10 reports on RELIANCE updated in the last year from 4 brokers with an average target of Rs 1141. Brokers have a rating for RELIANCE with 2 price upgrades in past 6 months and 3 price upgrades,1 upgrades and 1 downgrades in past 1 Year.

Core oil/gas/petchem EBITDA should see 16% CAGR in FY1618, though telecom profitabilitywouldbehitbyhigherexpenses/capitalisationinitially. WithFCFgenerationof~Rs190bninFY18vs.negative~Rs660/290bninFY15/16,RIL's...

RIL remained unfazed by weak global macros and muted crude prices, making its highest PAT of Rs 274bn in FY16. This was led by a seven-year high GRM, strong polymer margins, and incremental chemical volumes. Robust incremental demand will continue in gasoline and polymers, driven by low prices. However, there is limited room for rise in margins and a sequential decline is likely in FY17.

Reliance Industries' (RIL) reported in-line 4QFY16 standalone EBITDA at INR107b (24% YoY and 4% QoQ), and PAT at INR73b (17% YoY and flat QoQ). GRM was largely in line at USD10.8/bbl (v/s est 11.0). Full year FY16 EBITDA/PAT up 27%/21% driven by GRM at...

Reliance Industries (RIL) net sales for 3QFY2016 declined by 27% yoy to Rs68,261cr as against Rs93,528cr in the corresponding quarter last year, due to fall in crude oil prices. The EBITDA however increased by 31% yoy to Rs11,368cr (marginally below our estimate), led by strong gross refining margin (GRM) and better-than-expected EBITDA of the Petrochemicals division. The GRM stood at $11.5/bbl for the quarter, the highest in seven years, as against $7.3/bbl in 3QFY2015. The Petrochemicals segments EBIT increased 28% yoy to Rs2,639cr, led by strong polymer deltas and higher volumes. This aided in a 463bp yoy expansion in EBIT margin to 13.6% during the quarter. Falling oil prices coupled with natural decline in domestic oil and gas production, coupled with the challenging scenario for the shale business resulted in an 89% yoy fall in the E&P; segments EBIT. Store additions in the Retail segment continued to remain strong with 187 stores added during the quarter. RIL continued building the ecosystem for distribution of Jio devices, gearing up for its roll out. We believe the Retail and Telecom businesses would be the key growth drivers for the company in the coming years. Outlook and valuation: We believe RILs growth in...

Backed by strong GRM and petchem margins, RIL reported a stellar set of number for 3QFY16. With its ability to tweak crude mix and product slate, RIL?s GRM stood at US$ 11.5/bbl ( 8% QoQ). The standalone EBITDA came in at a record high of Rs 103bn ( 43% YoY) and PAT was Rs 72bn ( 42%).

RIL beat market expectations with its 2Q results, mainly driven by strong GRM and petchem margins. RIL again proved its ability to tweak crude mix and product slate. RILs GRM grew to US$ 10.6/bbl ( 2% QoQ) despite the fall in Singapore GRM (-17%). Standalone EBITDA increased to Rs 98bn ( 19% YoY). Lower other income (lower cash accruals) partly offset the growth and PAT stood at Rs 66bn ( 14%). While crude prices fell by 51% YoY, petchem prices saw a drop of just 20-30%.