Buy Reliance Industries; target of Rs 1465: Sharekhan

Sharekhan’s research report on Reliance Industries

RIL’s stock price corrected by 11% in the past three months, attributable to weak refining margin. However, we see this as an opportunity to Buy as higher diesel cracks would largely offset the decline in gasoline cracks for RIL. Ramp-up of petcoke gasification and RoGC project to help boost refining and petchem margins in FY2020E. Retail business to benefit from unique online-offline retailing strategy. Strong subscriber addition and revenue market share gain to improve financials of the telecom business.

Outlook

We retain our Buy rating with unchanged PT of Rs.1,465.