BUY AND HOLD :
CMP Rs883, Target Rs1,091, Upside 23.6%
±
Revenues at Rs810bn, higher by 39%
yoy; better than our estimates
±
OPM falls 379bps yoy driven by fall
in EBIT margins of petrochemical segment and lower contribution of the oil and
gas segment
±
GRMs were at US$10.3/bbl v/s our
expectations of US$10.5/bbl
±
Higher cash balance and better
yields have resulted in 49% yoy jump in other income
±
PAT at Rs56.6bn was in line with
our expectations
±
In the near term, key earnings
driver for RIL would be further strength in GRMs and recovery in petrochemical
spreads
±
We maintain our BUY rating with a
9-month price target of Rs1,091
