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Wednesday, April 23, 2008

Reliance Industries (Q4 FY08) - India Infoline

 

Reliance Industries Ltd (Q4 FY08): Maintain BUY

CMP Rs2,642, BUY

Target price Rs3,196,  Upside 21%

 

ה       Net sales up 35.8% driven by higher realizations across the segments.

ה       GRMs at US$15.5/bbl for Q4 FY08, much in line with expectations.

ה       OPM down 270bps to 16.1% as petchem and oil and gas EBIT margin fall.

ה       Three additional discoveries made in Q4 FY08.

ה       Firm refining margins, commencement of production of gas from KGD6 in H2 FY09 and additional discoveries to drive future growth.

ה       We recommend a BUY with a sum-of-parts target price of Rs3,196


 
 

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