Senior financial services firm Morgan Stanley has reduced the rating of Reliance Industries (RIL). Brokerage believes that Petrochemical and Telecom's leading company has grown at an annual rate of 17 per cent in the last three years. In the financial year 2019-20, this rate may be reduced to half.
Morgan Stanley says that in the last two years, the company's earnings have risen sharply. But, this trend can change now. Due to the downturn of major business, the scope of earnings growth is limited.
Morgan Stanley has reduced the target price of RIL from Rs 1,349 to Rs 1,230. Morgan Stell says that digital investment of the company can give it a profit. The company is rapidly introducing new business. Brokerage has reduced its rating due to energy business.
The brokerage estimates that the average refining margin of Reliance Industries can be $ 11 per barrel in FY 2019-20 and $ 12.75 per barrel in FY 2020-21. This shows an annual growth of 19 per cent compared to the financial year 2018-19. However, this can reduce the cost of crude and naphtha margins.
Brokerage said, "The margin and earnings estimates are expected to fall, pure refining companies and chemical stocks are looking more attractive, both of which can prove to be a better option. Their prices are even more reasonable than Reliance. . "
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Morgan Stanley says that in the last two years, the company's earnings have risen sharply. But, this trend can change now. Due to the downturn of major business, the scope of earnings growth is limited.
Morgan Stanley has reduced the target price of RIL from Rs 1,349 to Rs 1,230. Morgan Stell says that digital investment of the company can give it a profit. The company is rapidly introducing new business. Brokerage has reduced its rating due to energy business.
The brokerage estimates that the average refining margin of Reliance Industries can be $ 11 per barrel in FY 2019-20 and $ 12.75 per barrel in FY 2020-21. This shows an annual growth of 19 per cent compared to the financial year 2018-19. However, this can reduce the cost of crude and naphtha margins.
Brokerage said, "The margin and earnings estimates are expected to fall, pure refining companies and chemical stocks are looking more attractive, both of which can prove to be a better option. Their prices are even more reasonable than Reliance. . "
For more information Best Advisory Company in Indore
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