Motilal Oswal is bullish on Reliance Industries has recommended buy rating on the stock with a target price of Rs 1150 in its research report dated April 27, 2018.
Motilal Oswal's research report on Reliance Industries
Reliance Industries’ (RIL) 4QFY18 standalone EBITDA increased 19% YoY (-2% QoQ) to INR134b, below our estimate of INR149b, due to lower throughput of 16.7mmt (our estimate: 17.8mmt). GRM of USD11.0/bbl was also below our estimate of USD11.4/bbl. PAT rose 7% YoY (+3% QoQ) to INR87b, benefiting from higher other income of INR26b (our estimate: INR17b) and lower depreciation of INR27b (our estimate: INR33b). Standalone PAT for the year stood at INR336b, +7% YoY. Consolidated PAT stood at INR361b, +20.9% YoY led by contribution from RJio.
Outlook
On FY20E basis, the stock trades at 13.3x consolidated EPS of INR75 and EV/EBITDA of 8.5x. Our SOTP-based fair value stands at INR1,150/share. Maintain Buy.
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