Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Oil & Gas: Reliance Industries (RELI.BO, Buy, on Conviction List)
• We believe that Reliance’s cyclical businesses are turning around and will likely drive an earnings surprise over the medium term. With RIL’s
leverage to recovering complex refining margins and the global ethylene cycle likely to bottom out in 2HCY11, we believe two of RIL’s three
core businesses are falling into place going forward. With the delay in D-6 volume ramp-up widely known and likely priced in, any positive news
flow on the E&P front could further re-rate RIL’s share price, in our view.
• Our 12-m SOTP-based target price of Rs1,250 for RIL implies potential upside of 39%. At our TP, RIL would trade at 14X FY12E EPS vs. its
historical range of 4X-33X.
Reliance Industries
> Our SOTP-based 12-month target price of Rs1,250 implies 39% potential upside
> Reliance is currently trading at a historically low P/E and P/BV multiple
> Any ramp-up in D-6 Gas production can add to RIL’s valuation as market is pricing nil growth
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Oil & Gas: Reliance Industries (RELI.BO, Buy, on Conviction List)
• We believe that Reliance’s cyclical businesses are turning around and will likely drive an earnings surprise over the medium term. With RIL’s
leverage to recovering complex refining margins and the global ethylene cycle likely to bottom out in 2HCY11, we believe two of RIL’s three
core businesses are falling into place going forward. With the delay in D-6 volume ramp-up widely known and likely priced in, any positive news
flow on the E&P front could further re-rate RIL’s share price, in our view.
• Our 12-m SOTP-based target price of Rs1,250 for RIL implies potential upside of 39%. At our TP, RIL would trade at 14X FY12E EPS vs. its
historical range of 4X-33X.
Reliance Industries
> Our SOTP-based 12-month target price of Rs1,250 implies 39% potential upside
> Reliance is currently trading at a historically low P/E and P/BV multiple
> Any ramp-up in D-6 Gas production can add to RIL’s valuation as market is pricing nil growth
No comments:
Post a Comment