Probal Sen News Today

Probal Sen believes that earnings growth for ONGC and Reliance will continue to be strong. Reliance, with its multiple growth levers from retail and telecom, is expected to have a 15% CAGR in EPS over the next three years. ONGCs production growth is becoming a reality after a lag, and realisations for both oil and gas remain high.

Reliance Q3 numbers were fairly strong with performance in several segments offsetting weakness in the gas exploration and O2C segments. Net debt continues to rise despite declining capex. Retail showed a 23% YoY growth in revenue and a 30% improvement in EBITDA, but return ratios remain below 10% due to increased capital allocation. Optimism remains for Jios ARPUs with traction expected from enterprise and fiber to home business, 5G investments, and tariff monetization. Stock price outlook is n...

“We currently have an add rating on Reliance with a target price of around Rs 2,650 odd. But we will definitely review the numbers and look at what the management has to say about their business outlook and new energy businesses and then take a call on what the stock looks like from here.”

According to a poll of 12 experts from brokerages and rating agencies, retail prices of petrol and diesel in India are expected to remain in the current range.

With fears of a global slowdown impacting exports, India’s ability to continue as one of the top exporters of fuel, especially to newer markets like the US and Europe, would be a key factor in limiting the country’s widening trade gap.

"The accumulated profits of Q1 are likely to help tide over the current quarter where margins have turned to basically almost nominal levels. Blended retail margins versus almost Rs 8.5 plus that they made on a blended basis in the first quarter. I would think that the OMCs would want to hold off on trying to pass on any of these price increases as much as is possible because there are legitimate inflationary concerns."

The annual shareholder meetings of Reliance Industries are much to look forward too, with the companys chairman and MD Mukesh Ambani using the occasion to make big ticket announcements be it the launch of Jio 4G telecom service back in 2016 to the launch of Jio GigaFiber in 2019, new renewable energy ambitions in 2020 or detailing a formal succession plan last year.

Honestly, if you look at the Q2 levels while GRMs have pulled up, the petrochemical business remains a little bit muted. I think there is still a long way to go for petrochemical margins, particularly on a YoY level.

Analysts said the panel’s recommendations, if implemented from April 1, are expected to bring immediate relief for consumers.

Global investment banking firm Morgan Stanley has said that Reliance Industries is on a path toward a $20 billion+ Ebitda run rate inflection,