/Buy Reliance Industries, target price Rs 2240: Motilal Oswal

Buy Reliance Industries, target price Rs 2240: Motilal Oswal

Motilal Oswal has given a buy rating to Reliance Industries with a target price of Rs 2240. The share price moved down by 2.69 per cent from its previous close of Rs 2054.35. The stock’s last traded price is Rs 1999.10.

Reliance Industries Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 1389260.63 Crore) operating in Diversified sector.

For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 116195.00 Crore, up 31.66 % from last quarter Sales of Rs 88253.00 Crore and down 21.77 % from last year same quarter Sales of Rs 148526.00 Crore. Company reported net profit after tax of Rs 10497.00 Crore in latest quarter.

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Investment Rationale
Using SOTP, the brokerage values the Refining and Petrochemical segment at 7.5x to arrive at a valuation of INR713/share for standalone. It ascribes an equity valuation of INR 900/share to RJio and INR627/share to Reliance Retail. It reiterates Buy, with Target Price of INR2,240/share.

Promoter/FII Holdings
Promoters held 49.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 27.2 per cent, DIIs 13 and public and others 10.6 per cent.

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