EUR 120.00 For Business Accounts Only

MOSL: Morning India (22/April/19): 1. Reliance Industries (Better petrochem offsets poor refining performance); 2. HDFC Bank; 3. Larsen & Toubro; 4. RBL Bank; 5. DCB Bank (Upgrade to Buy); 6. Quess Corp; 7. Fin

MOrning India (22/April/19): 1. Reliance Industries (Better petrochem offsets poor refining performance); 2. HDFC Bank; 3. Larsen & Toubro; 4. RBL Bank; 5. DCB Bank (Upgrade to Buy); 6. Quess Corp; 7. Financials; 8. India Life Insurance

 

Today’s top research idea

Reliance Industries: Better petrochem offsets poor refining performance

• Better petrochem performance offset the poorer refining margins in the quarter resulting in the company reporting in-line standalone EBITDA/PAT. However, better-than-expected performance in the non-core segments resulted in the company reporting better than expected consolidated EBITDA/PAT. The company echoes our concerns on supply glut in refining and petrochem segments going forward, which is likely to result in poor core performance.
• Retail segment has shown improvement in core EBITDAM growing from 6% in FY18 to 7% in FY19. ARPU declined QoQ to INR126. We continue to value RIL using SOTP. We called core segments at 7.5x FY21 EV/EBITDA and add the value of non-core segments to arrive at a target of INR1,431. We maintain our positive outlook on the non-core segments, richly built in our valuation. Reiterate Neutral on the stock.

Piping hot news

Maruti Suzuki cuts discounts on several models, all to go by September

Maruti Suzuki has started lowering discounts on several models to drive up sales before it phases out the practice later this year. Dealers FE spoke to said discounts on popular models such as Alto and Dzire were trimmed from Rs 60,000 earlier to Rs 40,000 in April. The discounts would be further lowered and fully phased out by around August or September. Similarly, discounts on compact SUV Brezza and premium hatchback Swift have been cut this month by around Rs15,000-Rs 30,000 and Rs 35,000, respectively.