Hold Reliance Industries - Results in line, concerns remain - Emkay

Reco: HOLD
CMP: Rs 823
Target Price: Rs 827

- RIL results in line with street and our expectations. QoQ net profit up by 20% to Rs.53.7bn on back of higher refining volumes, weaker rupee and higher other income

- Company reported healthy GRM of $9.5/bbl v/s $7.6/bbl in Q1 FY13 and $10.2/bbl in Q2FY12, mainly on the back of refinery outages, particularly in Japan, China and Taiwan leading to tighter market and hence stringer cracks

- Petchem EBIT surprise positively at Rs.17.4, flat QOQ, due to increase in sales volumes which offset decline in product margins. KG D6 prod. at 28.5mmscmd, continued the declining trend

- Going ahead we remain cautious on refining and petchem cycle on the back of weak demand and/or new capacity additions. Maintain HOLD rating with TP of Rs827.

Source : Equity Bulls

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