Edelweiss maintains buy on Reliance Industries, raises target to Rs 1,844

Edelweiss has maintained buy rating on Reliance Industries in the long term and raised target price to Rs 1,844 from Rs 1,716. Shares of Reliance Industries ended down 0.7% at Rs 1,562.20 on Tuesday while BSE Sensex closed 247.55 points down at 40,239.88.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 148526.00 crore, down -5.38 % from last quarter sales of Rs 156976.00 crore and up 3.63% from last year same quarter sales of Rs 143323.00 crore. The company has reported net profit after tax of Rs 11298.00 crore in the latest quarter.


The company’s top management includes Dr.Raghunath A Mashelkar, Dr.Shumeet Banerji, Mr.Adil Zainulbhai, Mr.Hital R Meswani, Mr.K V Chowdary, Mr.Mukesh D Ambani, Mr.Nikhil R Meswani, Mr.P M S Prasad, Mr.Pawan Kumar Kapil, Mr.Raminder Singh Gujral, Mr.Yogendra P Trivedi, Mrs.Arundhati Bhattacharya, Mrs.Nita M Ambani, Prof.Dipak C Jain. Company has S R B C & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 6,339,123,229 shares outstanding.

Investment Rationale

Higher gross refining margins due to IMO/petcoke gasifier ramp up and improving outlook on telecom/retail margin will drive 25% compounded growth in Ebitda over FY19-21, said Edelweiss.The brokerage estimates that the share of digital business to consolidated Ebitda/profit after tax will double to 41%/ 24% by FY23.