Accumulate Reliance Industries - Result Update - Emkay

Reco: ACCUMULATE Reliance Industries
CMP: Rs 792
Target Price: Rs 913

Results disappoint, core business under pressure

RIL reported disappointing set of numbers on the back of margin pressure on refining and petchem business.

Higher Other Income at Rs17bn v/s Rs7.4bn in Dec11Qtr, stalling the decline in net profit to 13.6%yoy and 22%qoq to Rs44.4bn.

Company has announced Buy Back plan of upto 120mn fully paid shares at a price not exceeding Rs870 per share, upto aggregate amount of Rs104.4bn from open market.

Going ahead we remain cautious on refining and petchem margins on the back of new capacities and/or weakening demand. We downgrade our reco to Accumulate and cut our target price to Rs913.

Source : Equity Bulls

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