Macquarie sees 9.1% upside in Reliance; target Rs Rs 1,905
By INDIATIMES NEWS NETWORK |
MUMBAI: Macquarie Research sees 9.1 per cent upside in Reliance Industries Ltd with a 12-month target of Rs 1,905 based on a Sum of Parts methodology, from Rs 1,746.85 on Aug 21.
The investment firm has an ‘Outperform’ rating on the Reliance Industries, and valuation of Rs 2,117.00. The catalyst for the price target is Reliance’s new oil & gas finds and enhanced clarity on organised retail.
Reliance Industries has struck oil in the deepwater block KG-DWN-98-1 (D4), in the Krishna Godavari basin. Initial tests indicate that this could possibly be the largest oil find on India's east coast.
The KG D4 block has an acreage of 8,100 sq km and Reliance has 100 per cent participating interest in this block. According to the MDT data, the latest discovery in the KG D4 block is estimated to have an oil pay of 20 metres, making it potentially the largest oil discovery on India's east coast.
“Reliance is our top oil and gas sector pick. This latest large oil discovery confirms our bullish view that Reliance's E&P business holds much greater potential upside. Reliance has planned a staggering $20 billion capital expenditure over the next five years, which will likely triple earnings in the next five years,” Macquarie Research said.
The investment firm has an ‘Outperform’ rating on the Reliance Industries, and valuation of Rs 2,117.00. The catalyst for the price target is Reliance’s new oil & gas finds and enhanced clarity on organised retail.
Reliance Industries has struck oil in the deepwater block KG-DWN-98-1 (D4), in the Krishna Godavari basin. Initial tests indicate that this could possibly be the largest oil find on India's east coast.
The KG D4 block has an acreage of 8,100 sq km and Reliance has 100 per cent participating interest in this block. According to the MDT data, the latest discovery in the KG D4 block is estimated to have an oil pay of 20 metres, making it potentially the largest oil discovery on India's east coast.
“Reliance is our top oil and gas sector pick. This latest large oil discovery confirms our bullish view that Reliance's E&P business holds much greater potential upside. Reliance has planned a staggering $20 billion capital expenditure over the next five years, which will likely triple earnings in the next five years,” Macquarie Research said.
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