Reliance Industries (BOM:500325)

QUOTE AND NEWS
The Economic Times  10 hrs ago  Comment 
In the past four quarters, foreign funds have increased their holding by 2.56 percentage points, of which 1.3 percentage points came in the June quarter alone.
The Times of India  Aug 21  Comment 
A senior member of Parliament’s Standing Committee on Petroleum and Natural Gas has questioned the government’s move to seek dismissal of ONGC’s petition in Delhi high court against Reliance Industries ltd by describing the state-run...
The Times of India  Aug 20  Comment 
In another setback to Reliance Industries (RIL), the oil ministry is considering a proposal to block India’s biggest private oil company from buying crude from its own field, sold through an open bidding process, even after it bid the highest...
The Hindu Business Line  Aug 20  Comment 
Reliance Industries today announced that it has executed storage and capacity agreements for the liquefaction and export of ethane with a North American terminal that is expected to start...
The Hindu Business Line  Aug 20  Comment 
The Oil Ministry is considering ordering Reliance Industries to stop selling KG—D6 crude oil to its Jamnagar refinery and instead sell it to Chennai Petroleum Corp Ltd (CPCL) at lower rates. ...
The Economic Times  Aug 19  Comment 
Reliance Industries Ltd is a 'BUY' call with a target of Rs 1035 and a stop loss of Rs 1000.
The Times of India  Aug 19  Comment 
Mukesh Ambani-led Reliance Industries (RIL) and the Ruias’ Essar Oil are all set to restart their petro-retail operations as diesel prices are likely to be de-regulated by Diwali.
The Economic Times  Aug 18  Comment 
Reliance Industries Ltd is a 'BUY' call with a target of Rs 1025 and a stop loss of Rs 990.
The Hindu Business Line  Aug 13  Comment 
E-tailer Homeshop18 is betting big on the 4G roll-out by Reliance Jio Infocomm (RJio), the telecom subsidiary of Mukesh Ambani-led Reliance Industries. The company, largely a home shoppi...
The Economic Times  Aug 12  Comment 
'The new price will help these companies - whether you talk about the PSUs or even Reliance Industries.'





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