Reliance Industries gains over 2% on strong Q2 results
MUMBAI: Oil & gas major Reliance IndustriesBSE 0.34 % gained over 2 per cent in early trade after reporting better-than-expected earnings for quarter ended September after market hours on Monday.
The company reported a net profit of Rs 5,972 crore, up 8.8 per cent, from Rs 5,490 crore in year-ago period.
Sales increased reported to Rs 1.13 lakh crore versus Rs 1.06 lakh crore, up 6.6 per cent, Year-on-Year (YoY).
The GRMs for Q2 came in at $8.3 per barrel versus $7.7 per barrel, YoY.
Kotak Institutional Equities has revised its FY2015-17E EPS standalone estimates for RIL to Rs 72 (-3.8 per cent),Rs 76.1 (-4.5 per cent) and Rs 90.9 (-6.5 per cent) to reflect (1) lower crude price assumptions, (2) lower KG D-6 gas production volumes, (3) higher interest and DD&A expenses and (4) other minor changes.
“We retain our ADD rating on the RIL stock noting (1) inexpensive valuations at 11.4X FY2016E standalone EPS versus BSE-30 Index at 14.5X, (2) strong earnings growth led by core business projects and (3) 15 per cent upside to our SOTP-based target price of Rs 1,100,” the report said.
At 09:21 a.m.; the stock was at Rs 966.40, up 0.89 per cent, on the BSE. It rallied 2.3 per cent intraday to touch a high of Rs 980.