Reliance Industries
Reco Price: Rs 958,
Target Price: Rs 1,260
RIL’s stock price has borne the brunt of negative news flows on account of slower ramp-up of KG Basin gas, subdued refining and petrochemical margins and concerns over the redeployment of the cash flows. However, the current price has discounted the worst case scenario. Brokerages expect RIL’s profitability to register 34 per cent CAGR over 2010-12 driven by improvement in refining margins coupled with ramp up of oil and gas production at the KG Basin. Higher share of E&P in the profit matrix will reduce exposure to cyclical segments. RIL's newer ventures (shale gas, Broadband and power) will keep it on high growth orbit going ahead. The stock is relatively under-valued trading at 1.7x 2011-12 P/BV. Maintain buy.
—Angel broking
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app