Brokers’ call: Espirito retains 'buy' rating on Reliance Capital

Espirito Santo Securities has maintained its ‘Buy’ rating on Reliance Capital with a target price of Rs 679. Reliance Capital reported a 66% jump in PAT on a year-on-year basis.

The numbers were ahead of consensus estimates of Rs 60 crore, with positive surprise coming from general insurance business which turned profitable and generated profit of Rs 16 crore.

“We think that the results were pretty good with most of the business barring life insurance showing improvements, the stock has moved up more than 100% over the last 12 months and we expect further upside from the current levels with improvement in general insurance and life insurance business,” Espirito Santo said in a report.

“Our only concern on the stock is around strain from the investments on P&L and the management is working to resolve this problem,” the report said.