US FDA records 11 observations at Sun Pharmaceutical’s Dadra unit
Infosys paying Rs 13,000-crore to shareholders is too little: Ex-CFO
SEBI to bar NRIs from investing via P-notes in bid to curb round-tripping

 

 

Buy Reliance Industries For target of Rs. 1,375

 

RIL’s standalone PAT at Rs 73bn was above our and Street expectation of Rs 69 bn, driven by strong cyclical business performance. Refining business profitability was supported by lower opex (USD 2.2 /bl vs. USD 2.9 /bl in Q3FY16), while strong polymer margins aided petchem EBIT. Capex overrun, project delays an overhang: Petchem, refining expansion capex has been increased to USD 18.5 bn vs. USD 17-17.5 bn earlier. Moreover, telecom businesscapex is expected at Rs 1,500 bn by FY17 end vs. Rs 1,350 bn earlier. Also, petcoke gasification and PX expansion projects have been delayed by 3-6 months. We cut FY17/18E EPS by 13/7% to factor in the above. Our SOTP-based fair value reduces marginallyto Rs 1,375. Maintain BUY (32% upside).

 

 

LIKE US