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Buy Reliance Industries

Posted: Mon Mar 06, 2017 12:30 pm
by Pee Vee
Buy Reliance Industries

Reco Price (Rs) 1,077, Previous Target (Rs) 1,275, Return Achieved 18%, New Target (Rs) 1,400, Expected Return 10%

We had recommended a BUY on Reliance Industries (RIL) with a target of Rs1,275 in Q3 FY17 result update released on January 17, 2017. The target was surpassed in the previous trading session, thus yielding a return of 18.4% within two months. We continue to be positive on the stock as its large scale investments done in refining, petrochemicals and telecom segments during the past three years fructify over next couple of years. Margins in refining and petrochemical segments is expected to see significant increase on the back of low cash costs of the new projects. Telecom venture is likely to achieve EBIDTA and PAT breakeven in two years and four years respectively. We recommend investors to hold the stock for an extended target of Rs1,400.