Accumulate Reliance Industries; target of Rs 1406: Prabhudas Lilladher
Prabhudas Lilladher’s research report on Reliance Industries
RIL reported Q4FY19 standalone results with EBITDA of Rs137bn (PLe: Rs142bn) and PAT of Rs85.5bn (PLe: Rs84.9bn) respectively. During the quarter, both refining and petrochemicals profitability came in lower than our estimates. For Q4, GRMs were at US$ 8.2/bbl (PLe: US$ 8.4/bbl) due to weak gasoline spreads given high inventory and weak demand. However, gasoil spreads were healthy given low inventory. Q4 refining thruput were also lower at 16MTPA (18MTPA in Q4) due to maintenance shutdown.
Maintain earnings, maintain ACCUMULATE: We maintain our estimates for FY19/20E. after a sharp run up, we maintain our rating to ACCUMULATE.
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