Reliance Industries - On track; Retain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 884
Target Price: Rs 982

- RIL results beat estimates, with net profit at Rs55.1bn, flat on qoq as against our and consensus estimate of Rs53bn

- Lower spreads in light-distillates affected sequential GRMs, which stood at $7.6/bbl vs. $7.7/$9.6/bbl qoq/yoy in line with our and consensus estimate of $7.5/bbl

- As expected the petchem EBIT margin declined to 8.4% vs. 10% qoq to Rs21.2bn, due to weak margins in PP, PVC and fibre intermediates. KGD6 production at 12mmscmd vs. 14mmscmd qoq. Currently, KG production at 13.5mmscmd

- With expected improvement in RIL's business profile in the next 2 years, limited downsides, potential upsides from positive developments in E&P and attractive valuations, we maintain Accumulate, with a target price of Rs982.

Source : Equity Bulls

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