Reliance Industries (BOM:500325)

QUOTE AND NEWS
The Economic Times  6 hrs ago  Comment 
If you are thinking of bottom-fishing just because the scrip has come closer to Rs 800, then you need to be cautious; I recommend 'avoid,' says Sandeep Wagle.
The Times of India  Mar 26  Comment 
The Cabinet has approved the supply of cheap liquefied natural gas (LNG) for power plants to rescue investments worth Rs 60,000 crore that was on the verge of sinking because of fuel scarcity, for which the government has squarely blamed the fall...
The Hindu Business Line  Mar 22  Comment 
RIL (₹854.3) The stock of Reliance Industries was volatile and formed a doji candlestick pattern in the weekly chart, indicating neutral stance. T...
The Times of India  Mar 20  Comment 
Regional language broadcaster Sun TV Network on Friday denied media reports which said Mukesh Ambani-controlled Reliance Industries was eyeing a takeover of Sun TV.
The Hindu Business Line  Mar 19  Comment 
CBI today told a Delhi court that Reliance Industries Ltd’s Vice-President (Finance) K V Mohanan and Rajendra Chitale of Mumbai-based law firm, Chitale and Associates, were “suspects” in the docum...
The Hindu Business Line  Mar 18  Comment 
Reliance Industries’ shares today gained 0.5 per cent as BNP Paribas has upgraded the stock to “buy’’ from “hold’’. It has raised the target price to Rs 980 from Rs 911.“We see limite...
The Economic Times  Mar 17  Comment 
Credit Suisse has come out with a note on Reliance Industries stating that co’s GRMs in quarter ended March 2014 can run up to $11/barrel.
The Hindu Business Line  Mar 16  Comment 
The government is examining CAG allegations of irregularities in ONGC hiring a deep sea drilling rig from Reliance Industries and will take appropriate action, Oil Minister Dharmendra Pradhan s...
The Hindu Business Line  Mar 15  Comment 
With major expansion on track, volumes and margins should improve
The Times of India  Mar 11  Comment 
Reliance Industries and Microsoft backed 11 start ups are in the market to tap venture capitalists, corporate and industry for funding and businesses to evolve as billion dollar companies of the future.





You may also be interested in articles related to Reliance Industries (BOM:500325):
 


Business Profile

Reliance Industries (RIL), established in 1966, is the flagship company of the Reliance group. The company started with textiles and thereafter backward vertical integrated in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production.

RIL is a leading producer of polyester yarn and fiber producer and amongst the major producers of petrochemical products in the world.

The company`s operations can be classified into three segments that of petroleum refining and marketing business, petrochemicals business and others (including crude oil and natural gas exploration and production business)

Presently, the company`s activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.

Some of RIL`s group companies include Reliance Petroleum (RPL), Reliance Retail, Indian Petrochemicals Corporation (IPCL) and Reliance Industrial Infrastructure.

RIL has manufacturing facilities at Naroda, Patalganga, Hazira and Jamnagar.


RIL has rallied 16% over last month even as refining margins have fallen. Lower-thananticipated margins present the biggest risk to our estimates and valuation. We maintain our Rs1,850 target price and downgrade the stock from Hold to Sell.

Refining looking shaky Singapore complex refining margins have averaged US$4.6/bbl to date in 2QFY09, according to Reuters, compared to US$8.2/bbl in 1QFY09 and US$6.4/bbl in 2QFY08. Gasoline margins have been weak even in the traditionally strong April-July period as US demand has declined. Given US car manufacturers are replacing their truck plants with small car plants, this decline could be structural rather than cyclical. Middle distillate (diesel/jet fuel) margins have been very strong (US$30/bbl+) since March 2008, but have dropped by US$10/bbl in August. Basically, demand growth appears to be slowing down just as new refining capacity is set come on stream. We believe the refining cycle will turn down from FY09 and forecast RIL GRMs will decline from US$15/bbl in FY08 to US$12.5/bbl in FY10. But, just as the upside in GRMs over last three years was under-estimated by the market (RIL GRM in FY04 was US$6.4/bbl), it is possible the downside will also end up looking worse.

Upsides all in E&P We have assumed that RIL will sell 40mmscmd of gas to RNRL/NTPC for the next 17 years at the disputed contract price (US$2.6mmbtu), however litigation on this issue is continuing. If there were no such liability, our FY10 and FY11 EPS estimates would rise to Rs206 and Rs192 respectively and our valuation could increase to Rs2,000, assuming no other changes. There is potential for surprises in terms of large new discoveries. However, our valuation is based on a gross reserve estimate of 7.7bn boe by March 2009, compared to RIL's disclosed 2P reserve estimate of 4.4bn boe.

Downgraded to Sell, target price Rs1,850 We maintain our EPS estimates and our SOTP-based target price, which values RIL as of end- FY09 (post conversion of promoter warrants). Our estimates factor in no government policy risks from any imposition of minimum alternate tax (MAT) on Reliance Petroleum, loss of tax holiday for gas production or any export tax on refined products.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki