MOSL: RELIANCE INDUSTRIES- A new beginning! Upgrading to Buy
Reliance Industries: A new beginning! Upgrading to Buy
(RIL IN, Mkt Cap USD104.1b, CMP INR1162, TP INR1400, 20% Upside, Upgrade to Buy)
In its AGM on 12th Aug’19, Reliance Industries (RIL) made the following major announcements:
- RIL and Saudi Aramco have agreed to a non-binding letter of intent (LOI), wherein the latter may acquire a 20% stake in the ‘oil-to-chemicals’ division at an enterprise value of USD75b.
- Consumer business is expected to contribute 50% of RIL’s consolidated EBITDA soon (v/s 32% in FY19).
- Fiber business will be rolled out commercially pan-India starting Sep’19.
- The target is to become a ‘zero net-debt’ company in the next 18 months.
- It expects consolidated EBITDA growth of 15% for the next five years.
- Jio and Retail may be listed within the next five years.
Reliance Industries is primarily engaged in the production and market of petrochemical products, and refinery and retail of petroleum and LPG. Co.'s petrochemical products include polymer - polypropylene (PP), polyethylene (PE), poly vinyl chloride (PVC); polyester - polyester filament yarn (PFY), polyester staple fiber (PSF), polyethylene terephthalate (PET); polyester intermediates - paraxylene (PX), purified terephthalic acid (PTA), mono-ethylene glycol (MEG); and cracker products - ethylene, propylene and aromatics. Co. is also engaged in the manufacture of RELAB and textiles. Co.'s textile products are sold under the brand names: Only Vimal, Harmony, Reance, RueRel and V2.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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