RIL: What analysts say about Silver Lake deal, rights issue, new core biz

NEW DELHI: Shares of Reliance Industries fell 3 per cent in Monday’s trade after the oil-to-telecom major reported a 39 per cent drop in March quarter earnings.

But thanks to the company’s deleveraging drive that now includes a $750 million investment from Silver Lake and India’s biggest rights issue ever and the company’s focus on telecom and retail, analysts are largely positive on the stock, with targets in Rs 1,500-1,700 level.

Morgan Stanley said a faster pace of balance sheet debt reduction is in works. It noted that January-March was the second straight quarter when the company reported positive free cash flow. RIL’s refining business outperformed with full utilisation rates and higher margins, it said and maintaining its ‘overweight’ stance on the stock.