Motilal Oswal - MOSL: Morning India (21/October/19): 1. Reliance Industries (Consumer businesses drive the quarter; Debt Capex moderating); 2. HDFC Bank; 3. Ambuja Cements; 4. LT Infotech; 5. Telecom; 6. DCB Bank; 7. South

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Motilal Oswal

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EUR 120.00 For Business Accounts Only

MOSL: Morning India (21/October/19): 1. Reliance Industries (Consumer businesses drive the quarter; Debt & Capex moderating); 2. HDFC Bank; 3. Ambuja Cements; 4. L&T Infotech; 5. Telecom; 6. DCB Bank; 7. South

MOrning India (21/October/19): 1. Reliance Industries (Consumer businesses drive the quarter; Debt & Capex moderating); 2. HDFC Bank; 3. Ambuja Cements; 4. L&T Infotech; 5. Telecom; 6. DCB Bank; 7. South Indian Bank

Today’s top research idea

Reliance Industries: Consumer businesses drive the quarter; Debt & Capex moderating

Standalone performance was in line with expectation while consumer business led the beat.
We revise the valuation multiple for the core segment of refining and petrochem to 8.5x (from 7.5x earlier) FY21E EV/EBITDA to factor in the enhanced delayed coker capacity, the widening of crude blend window for maximizing distillate yields prior to IMO and the revival in petchem margins for the company under its flexible feedstock utilization.
The company expects to utilize the full economics of petcoke gasifier by 4QFY20.
The stock trades at 17.5x FY21E EPS of INR80.9 and 11.4x FY21E EV/EBIDTA. RIL (standalone business) is expected to be FCF positive in FY20, with FCF/share of INR108.
We reiterate our Buy rating on the company with a revised TP of INR1,630.

Piping hot news

Whistleblower accuses Infosys of ‘unethical’ practices to boost numbers

An anonymous group calling itself “ethical employees” has complained to the board of Infosys and the US Securities and Exchange Commission (SEC) alleging that the company is taking ‘unethical’ steps to boost short-term revenue and profits and stating that the complainants have emails and voice recordings to substantiate the claims.

22/10/2019 3 EN

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MOSL: Morning India (21/October/19): 1. Reliance Industries (Consumer businesses drive the quarter; Debt & Capex moderating); 2. HDFC Bank; 3. Ambuja Cements; 4. L&T Infotech; 5. Telecom; 6. DCB Bank; 7. South

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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