For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Reliance Industries Shares Jump 5% On Morgan Stanley’s Overweight Stance

|

On Tuesday, shares of Reliance Industries Limited (RIL) surged as much as 5 percent to Rs 1,298.80 on NSE. The stock gained after the international brokerage house Morgan Stanley raised the company's earnings target and maintained its "overweight" rating. It revised its price target on the stock from Rs 1,349 to Rs 1,469.

Reliance Industries Shares Jump 5% On Morgan Stanley’s Overweight Stance
 

The brokerage is also bullish on RIL's earnings. Morgan Stanley said that better refining margins, lower tax and cheaper gas feedstock cost, along with a reduction in balance sheet leverage should de-risk earnings growth outlook and increase investor confidence.

It projects earnings CAGR (compound annual growth rate) of 17 percent for FY 19-21 period. Earnings forecasts for the financial years 2019-20 and 2020-21 was raised by 7 percent and 12 percent.

The brokerage expects a recovery in energy earnings in both refining and petrochemicals.

"Recovery should be slow, but slowing supply (either through rebalancing in the industry or slowing capacity additions) should support margins. We believe the target of zero net debt by F2021 will help lower investor concerns about debt (which has increased steadily over the past seven years)," the report said.

RIL's shares last touch their 52-week high of Rs 1,417.50 on 2 May 2019.

Read more about: reliance industries limited ril
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more