 "Reliance Industries ends at over 18-month high")
Shares of Reliance Industries (RIL) ended higher by 2.5% at Rs 1,052 on the National Stock Exchange (NSE) and BSE, its highest closing level over past 18-months. On June 24, 2014, the stock closed at Rs 1,060 on the NSE and BSE.
On intra-day level, the stock is still 1% away from its 52-week high. It hit an intra-day high of Rs 1,061 on the NSE, is less than 1% away from its 52-week high of Rs 1,068 touched on July 23, 2015 in intra-day trade.
The stock of RIL outperformed the market gaining 6% in past one week compared to the 3% decline in the Nifty 50.
The S&P BSE Sensex closed 19-month low at 24,825, its lowest level since June 4, 2014.
Analyst at Sharekhan sees strong earnings traction in case of RIL, backed by an improvement in its gross refining margins (GRM) and the benefit of capex incurred in the petrochemical and refining businesses.
“We expect RIL to earn a premium of around $3 per barrel over Singapore GRM taking the Q3FY2016 GRM to $11 per barrel from $10.6 per barrel in Q2FY2016. The capacity addition in the high-margin petrochemical business would further boost the profitability,” the broking firm said in a Q3FY2016 earnings preview.
According to Business Standard reports, CLSA believes the RIL’s earnings before interest, tax, depreciation and amortisation (Ebitda) should rise 50% in the next two years to $10 billion on the back of downstream expansion.
The brokerage has a strong buy rating on RIL and believes 2016 will be a watershed year for the company, as projects worth $30 billion will be commissioned across various businesses. CLICK HERE TO READ FULL REPORT.
On intra-day level, the stock is still 1% away from its 52-week high. It hit an intra-day high of Rs 1,061 on the NSE, is less than 1% away from its 52-week high of Rs 1,068 touched on July 23, 2015 in intra-day trade.
The stock of RIL outperformed the market gaining 6% in past one week compared to the 3% decline in the Nifty 50.
The S&P BSE Sensex closed 19-month low at 24,825, its lowest level since June 4, 2014.
Analyst at Sharekhan sees strong earnings traction in case of RIL, backed by an improvement in its gross refining margins (GRM) and the benefit of capex incurred in the petrochemical and refining businesses.
“We expect RIL to earn a premium of around $3 per barrel over Singapore GRM taking the Q3FY2016 GRM to $11 per barrel from $10.6 per barrel in Q2FY2016. The capacity addition in the high-margin petrochemical business would further boost the profitability,” the broking firm said in a Q3FY2016 earnings preview.
According to Business Standard reports, CLSA believes the RIL’s earnings before interest, tax, depreciation and amortisation (Ebitda) should rise 50% in the next two years to $10 billion on the back of downstream expansion.
The brokerage has a strong buy rating on RIL and believes 2016 will be a watershed year for the company, as projects worth $30 billion will be commissioned across various businesses. CLICK HERE TO READ FULL REPORT.