Analysts' corner
Reliance Inds & Titan
RELIANCE INDS
Reco price: Rs 842
Target price: Rs 1,001
Reliance Industries (RIL)'s Eagle Ford JV (Pioneer: 42 per cent, RIL: 45 per cent) has made rapid progress, with CY12-13 production guidance having been recently upped by 15-30 per cent. The proportion of liquids in overall production has also risen from 45 per cent in 2010 to 65 per cent presently, helping offset the relatively weak US gas price environment. RIL has also gained, although nationally, on its investment, with recent Eagle Ford transactions being concluded at two times the valuations paid by RIL (on the $/acre metric). RIL's two other JVs, with Chevron (Marcellus) and Carrizo (Marcellus), have, however, yet to show meaningful contribution, with info/guidance also being relatively limited. Buy.
— Citigroup
TITAN
Reco price: Rs 212
Target price: Rs 250
Titan has signed a binding agreement for the acquisition of a 293-year-old Swiss watch brand, Favre Leuba, for Rs 13.8 crore or €2 million, as part of its strategic business plan to expand and add zing to its watch product portfolio. Favre Leuba's portfolio consists of unique and technologically-driven premium offerings in line with Titan's recent launch of HTSE collection. Analysts believe the acquisition is timely, as customer appetite for more modern and premium watches is growing. Maintain buy.
— Edelweiss Securities