Global investment bank UBS on Wednesday retained its "buy" rating on RIL with a 1-year target price of Rs 1,154. The brokerage expects RIL to post strong Q1 earnings on the back of strong gross refining margins.
Earlier, Kotak Institutional Equities had also retained its "buy" on Reliance Industries (target Rs 1,050) noting (1) robust earnings accretion from core-business projects and (2) recent strength in Asian refining as well as petrochemical margins.
Refining margins are expected to be $8.8/barrel in FY16, $10.8/barrel in FY17 and $10.9 /barrel in FY18 versus $8.6/barrel in FY15, Kotak said.
Avinnash Gorakssakar, CIO & Head of Research of Precision Investment Services, has a 12-month target price of Rs 1,050 on RIL. He also expects RIL to post a strong Q1.
In other news, Reliance Brands announced a joint venture with Japan's Muji to bring the globally renowned lifestyle brand to India, according to reports.
As of 3.12 p.m., RIL traded 3.1 per cent higher at Rs 931.85, outperforming the broader Nifty, which was up 0.5 per cent.
