Merrill Lynch puts 'buy' on Reliance Inds
Merrill Lynch has retained its “buy” rating on the stock, saying it expects the 2-year earnings per share (EPS) CAGR in FY08-FY10E to be 40%.
Reliance Inds
cmp: Rs 1,649.60
target price: Rs 2,910
Merrill Lynch has retained its ���buy��� rating on the stock, saying it expects the 2-year earnings per share (EPS) CAGR in FY08-FY10E to be 40%. ���RIL has one of the strongest earnings growth in our global universe.
KG D6 oil and gas and RPL refinery will be main earnings drivers. RIL���s valuation is compelling now at 8.5 times on FY10E EPS and PEG of 0.21 times,��� said Merrill Lynch in a note to its clients.
According to Merrill Lynch, positive news flow on exploration and production (E&P) in terms of discoveries and reserves accretion is likely to continue for the company. ���RIL is scheduled to drill in at least three highly prospective blocks (KG D6, KG D9 and Mahanadi D4) in the next 12 months,��� said the Merrill note.
The firm expects strong growth prospects for RIL beyond FY10E (estimated), too. ���We believe prospects beyond FY10E will be driven by two large petrochemical projects, rise in gas reserves and production, organised retail and SEZ,��� the note said.
Some main risks for the company, said the note, also appear to be receding. ���There are indications that some of the main risks like no tax holiday for gas production and windfall tax are receding,��� the Merrill note added.
cmp: Rs 1,649.60
target price: Rs 2,910
Merrill Lynch has retained its ���buy��� rating on the stock, saying it expects the 2-year earnings per share (EPS) CAGR in FY08-FY10E to be 40%. ���RIL has one of the strongest earnings growth in our global universe.
KG D6 oil and gas and RPL refinery will be main earnings drivers. RIL���s valuation is compelling now at 8.5 times on FY10E EPS and PEG of 0.21 times,��� said Merrill Lynch in a note to its clients.
According to Merrill Lynch, positive news flow on exploration and production (E&P) in terms of discoveries and reserves accretion is likely to continue for the company. ���RIL is scheduled to drill in at least three highly prospective blocks (KG D6, KG D9 and Mahanadi D4) in the next 12 months,��� said the Merrill note.
The firm expects strong growth prospects for RIL beyond FY10E (estimated), too. ���We believe prospects beyond FY10E will be driven by two large petrochemical projects, rise in gas reserves and production, organised retail and SEZ,��� the note said.
ADVERTISEMENT
Some main risks for the company, said the note, also appear to be receding. ���There are indications that some of the main risks like no tax holiday for gas production and windfall tax are receding,��� the Merrill note added.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
