EUR 120.00 For Business Accounts Only

MOSL: Morning India (1/April/20): 1. Reliance Industries (Core business implies mere 2.5x FY22E EV/EBITDA); 2. Hero MotoCorp; 3. MCX; 4. EcoScope

MOrning India (1/April/20):

Today’s top research idea
Reliance Industries: Core business implies mere 2.5x FY22E EV/EBITDA
** Given the current shutdown of retail stores (except grocery), Reliance Retail could see 4-5% revenue loss; however, the pace of recovery is key. Thus, we have reduced our target multiple to 19x EV/EBITDA to capture this impact (21x earlier), with revised TP of INR450 (v/s INR500 earlier).

** Further RJio should see limited impact as drop in new subscriber addition/physical recharges would get offset by an increase in data consumption. For the core business, we have revised down refinery throughput and petrochemical sales to factor in the COVID-19 lockdown. Demand for both air and road transportation fuels has been drastically affected. Considering that the tide would soon turn in favor of the core segment, we highlight RIL as one of the top picks in the sector.

** At CMP, the core business implies mere 2.5x FY22E EV/EBITDA.

Piping hot news
Fiscal deficit touches 135.2 pc of budget estimate at Feb-end
The government's fiscal deficit touched 135.2 per cent of the full-year target at February-end mainly due to slower pace of revenue collections, according to an official data released on Tuesday. In actual terms, the fiscal deficit or the gap between expenditure and revenue was Rs 10,36,485 crore, the data by the Controller General of Accounts (CGA) showed.