30 April 2007 14:43 [Source: ICIS news]
MUMBAI (ICIS news)--India’s Reliance Industries Ltd's (RIL) shares rose 1.42% to Rs1,560.10 ($38/€27.9) on Monday on the Bombay Stock Exchange after brokerages raised their price target for the company following strong fourth quarter results, which were 6% ahead of Bloomberg consensus.
Macquarie Research on Friday raised its price target on RIL to Rs1,775 per share from Rs1,650 per share, adding that the company’s refining margins were at an all-time high.
The head of RIL’s refining business said refining margins would remain strong until 2011 due to delays in new capacity.
Macquarie, which has an outperform rating on the stock, said it expected the Reliance Petroleum refinery to complete ahead of schedule, therefore, being an additional kicker.
The company said it expected the petrochemicals upcycle to continue for another 18–24 months on the back of project delays. RIL expected cracker and polyester margins to improve in the current quarter, the brokerage added.
Enam Securities, which raised the price target to Rs1750, said refinery performance in the fourth quarter had been excellent but the petchem business was a slight disappointment.
It added that RIL’s overall performance could have been better if the petrochemicals would not have experienced a margin pressure.
Enam's analysts said in a note to clients that they remained upbeat on the refining as well as petrochemicals and expected RIL to benefit immensely.
Enam maintained its sector outperformer rating on the stock.
($1 = Rs41)
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