BSE English news | BSE, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

On Wednesday, shares of RIL on the BSE closed at Rs 1,552.55, lower by Rs 26.30 or 1.67 per cent.The positive comes on the back of expectation of stronger growth in the telecom segment, with higher revenue and strong subscriber base among others."We raise our earnings estimates for FY21/22E and 12-month target price to Rs 1,850 (from Rs 1,635) mainly on our expectation for stronger growth in the telecom business, driven by a higher ARPU from potential tariff hikes coupled with continued strong subscriber addition momentum (44 per cent market share by FY22E)," Goldman Sachs said in a research note."We maintain our positive view on the stock given: sharp sequential acceleration in refining margins due to International Maritime Organisation's (IMO) 2020 regulations and accelerating global GDP driving tight diesel markets," it added."Continued high growth in consumer-focused businesses, which we estimate to grow at 50 per cent FY19-22E CAGR; and significant improvement in FCF (free cash flow) and asset monetisation leading to deleveraging. Our FY20/21E EBITDA is 7 per cent/20 per cent above Bloomberg consensus. Reiterate Buy (on CL)," the research note said.Further, it expects Reliance Jio to benefit the most from the recent tariff hike announced by all the three private telecom operators. It said that among the three operators, Jio is most likely to witness the highest increase in average revenue per user (ARPU)."We believe Jio is likely to see the highest increase in ARPU/revenue from the recent tariff hikes, due to a large proportion of smartphone users in its base. Coupled with Jio's strong subscriber addition momentum, we believe the company's market share can continue to expand, and reach 44 per cent by FY22E, from 35 per cent in 2Q20," the note said.It also said that complex refiners will be the biggest beneficiaries of IMO 2020 regulations and RIL, with the highest refining complexity, is well positioned to benefit from the same. Shipping companies have to adhere to the IMO's low sulphur fuel regulations starting January 1. The regulations 2020 mandate reduction in sulphur content of bunker fuel to less than 0.5 per cent from 3.5 per cent to reduce sulphur dioxide emissions globally.RIL's refinery has the complexity of 20, which means it can break the heaviest of crude into sweet crude saving on price due to light heavy differentials and increased demand from the shipping companies."We expect GRMs (gross refining mining) for RIL to rise sharply from last quarter's level of $9.4/bbl to our FY21 forecast of $14.5/bbl. This improvement in GRMs is driven by IMO 2020 and accelerating global GDP driving tight diesel markets; reducing headwinds from heavy crude sourcing as lower demand of heavy and sour crude would start to offset declining supply; and benefits accruing from the petcoke gasification project," it said.( With inputs from IANS )

BseFOLLOW

Bse, Latest News

Software major Infosys on Friday said it was not uncommon for law firms to solicit plaintiffs in a lawsuit. ...

A day after a US-based law firm announced filing of a class action lawsuit against Infosys, the IT services major on Friday said it was not aware of any additional complaints, except for the one filed in October. ...

The privatisation process of state-run BPCL will start this week with roadshows for its strategic stake sale scheduled from Friday in London, the US and Dubai led by DIPAM and oil ministry officials. ...

in a range and seem to be discounting good and bad news as they come. The broad range of 11,800-1,2200 on the NIFTY and 40,000-41,000 on the BSE SENSEX seem to be keeping the indices under control. ...

The Income Tax Department carried out search and survey operations on certain share-brokers/traders for their alleged involvement in facilitating accommodation of profits/loss through reversal trades in illiquid stock options in Equity Derivative Seg ...

The Income Tax Department has said that on December 3, the department carried out search and survey operations on certain share-brokers and traders for being involved in facilitating accommodation of profit and loss through reversal trades in illiqui ...

The National Stock Exchange (NSE) has issued an advisory on steps to keep stocks safe whereby the bourse has asked the investors to ensure timely payouts. ...

Goldman Sachs Equity Research has increased the 12-month target price of the shares of Reliance Industries to Rs 1,850 per share. The equity research firm also raised the earnings estimate for financial year 2021-22. ...