Mar 6, 2008

Report- Reliance Industries recovers on 5th March 2008

Reliance Industries recovers on 5th March 2008

Meanwhile, BSE Sensex was up 175.78 points or 1.08% to 16,515.68, as expectations of a US interest rate cut strengthened

On BSE, 5.38 lakh shares were traded in the counter. The scrip had an average daily volume of 7.82 lakh shares in the past one quarter.

The stock hit a high of Rs 2442 and a low of Rs 2227.90 so far during the day. The stock had a 52-week high of Rs 3,252.10 on 15 January 2008 and a 52-week low of Rs 1,250 on 5 March 2007.

India's largest private sector entity by market capitalisation and oil refiner had undertperformed the market over the past one month till 4 March 2008, declining 13.54% compared to the Sensexs fall of 12.44%. It had also underperformed the market in the past one quarter, declining 21.73% compared to Sensexs decline of 17.22%.

The companys current equity is Rs 1,453.65 crore. Face value per share is Rs 10.

The current price of Rs 2,265.70 discounts its Q3 December 2007 annualized EPS of Rs 222.26, by a PE multiple of 10.19.

The chain of optical stores will comprise of independent stores, and stores within Reliance Retail formats such as Hypermart, Super and Wellness stores. The joint venture will bring world class retail optical stores to India, with a range of private label frames, lenses, sunglasses and contact lenses and solutions. Reliance Industries holds 98.74% stake in Reliance Retail.

Pearle Europe, a subsidiary of HAL Investments, operates 2,200 optical retail stores in 21 countries across Europe and the Middle East.

As per recent reports, Reliance Industries was in advanced talks with the New York-based Vornado Realty Trust, one of the worlds top five real estate asset managers, to float a $1-billion plus fund.

The proposed fund will acquire and manage properties, mainly in the retail space, across India, reports suggest. The proposed joint venture is likely to manage real estate for RILs rapidly-expanding retail arm Reliance Retail (RRL), reports added.

Vornado, which has a market capitalisation of nearly $14 billion, owns and manages over 116 million square feet of realty assets in the US with significant concentration in New York and Washington districts.

Reliance Industries net profit rose 162.2% to Rs 8,079 crore on 22.7% rise in sales to Rs 34,590 crore in Q3 December 2007 over Q3 December 2006.

Reliance Industries is engaged in oil refining, producing and distributing plastic and intermediates, polyester filament yarn, fibre intermediates, polymer intermediates, crackers, chemicals, textiles. It is also into exploration and production of oil and natural gas.

Report by HDFC

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