EUR 120.00 For Business Accounts Only

MOSL: Morning India (20/January/20): 1. Reliance Inds. (Consumer businesses fuel growth); 2. TCS; 3. HDFC Bank; 4. HCL Tech.; 5. L&T Finance Holding; 6. Jindal Steel & Power

Morning India (20/January/20):

Today’s top research idea
Reliance Inds: Consumer businesses fuel growth
** RIL reported marginally better than expected standalone EBITDA. While refining margin of USD9.2/bbl was on-line with our estimate, petrochemical margins were lower balanced, however, by higher than expected petrochem sales volume.

** Lower tax resulted in standalone PAT beating our estimates. Jio's EBITDA was a marginal miss while Reliance Retail surprised with 16% beat on EBITDA on he back of 1.4% improvement in EBITDAM. While the Outlook on core refining and petrochem continues to be weak, optimism still remains in both Jio as well as Retail segments.

** We value standalone at 7.5x FY22 EV/EBITDA and add the contribution from Jio & Retail to arrive at a Target price of INR1820. Reiterate Buy.

Piping hot news
KV Kamath, Swapan Dasgupta likely to be inducted in Modi govt
BRICS Bank Chairman KV Kamath and BJP Rajya Sabha MP Swapan Dasgupta are among the technocrats likely to be inducted into the council of ministers by Prime Minister Narendra Modi soon. According to highly-placed sources, veteran banker Kamath is likely to be inducted as Minister of State in the Finance Ministry and he may over time grow in the role.