Motilal Oswal has maintained its buy rating on Reliance Industries in its July 24, 2009 research report.
"Reliance Industries (RIL) reported 1QFY10 PAT of Rs 36.4 billion (versus our est of Rs 36.5 billion), down 11.5% YoY and 6% QoQ. We believe that apart from its ability to maintain petchem margins, key issues to watch in the near term would be: (1) resolution of its court case with RNRL and (2) ramp-up of KG-D6 gas supplies. RIL currently trades at 16x FY10 EPS of Rs 125.5 and 12.7x FY11 EPS of Rs 158.5. We are rolling over our valuation basis from FY10 to FY11. Our revised base SOTP target price for RIL is Rs 1,638 per share. Further, we believe there’s potential E&P upside of Rs 516 per share. Maintain 'Buy'," says Motilal Oswal's research report.
"Reliance Industries (RIL) reported 1QFY10 PAT of Rs 36.4 billion (versus our est of Rs 36.5 billion), down 11.5% YoY and 6% QoQ. We believe that apart from its ability to maintain petchem margins, key issues to watch in the near term would be: (1) resolution of its court case with RNRL and (2) ramp-up of KG-D6 gas supplies. RIL currently trades at 16x FY10 EPS of Rs 125.5 and 12.7x FY11 EPS of Rs 158.5. We are rolling over our valuation basis from FY10 to FY11. Our revised base SOTP target price for RIL is Rs 1,638 per share. Further, we believe there’s potential E&P upside of Rs 516 per share. Maintain 'Buy'," says Motilal Oswal's research report.
