Monday, 27 October 2008

Buy Reliance, target of Rs 1734: Motilal Oswal

Motilal Oswal has recommended a buy rating on Reliance Industries with a target of Rs 1734 in its October 24, 2008 research report. "Reliance Industries reported 2QFY09 PAT of Rs 41.2 billion (our est. Rs 41.9 billion); up 7.4% YoY and flat QoQ. We have reduced our FY09 EPS estimate by 3.5% to Rs 108 to account for increased interest cost and lower price for its oil sales and FY10 EPS estimate by 8% to Rs 190."

"We have also reduced our SOTP based target to Rs 1,734 to factor in 1) lower multiple assigned to RIL's core business,due to subdued business outlook 2) cut in share of profit from RPL (reduced GRM assumptions), and 3) revised retail business value (increased risks). We remain positive on the company primarily due to large potential upsides from E&P. The stock currently trades at 9.4x FY09E and 5.3x FY10E EPS. Buy," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

No comments:

Post a Comment

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.