RIL shares drop after financial service firm UBS issues 'sell' advisory

Shares of Reliance Industries (RIL) dropped the most in almost a month after UBS issued a ‘sell’ call. The brokerage set a price target of Rs 870, about six per cent lower than the current market price. Shares of RIL closed at Rs 923.5, down 2.5 per cent on the BSE. 

UBS analysts Amit Rustagi and Navin Killa in a note on Monday said RIL’s $60-billion spend on expanding petroleum coke, gasification, petrochemicals and its telecommunications businesses won’t start generating cash anytime soon, to help it pare its debt. 

Shares of RIL have gained more than 70 per cent in the past year. Currently, 27 brokerages have a ‘buy’, seven have ‘hold’ and six have a ‘sell’ call on the RIL stock, data provided by Bloomberg showed. The consensus 12-month price target for RIL is Rs 975.