InFocusFinance

Morgan Stanley Report Resulted 3 % Growth in RIL Shares

Sharing is caring!

Shares of Reliance Industries surged over 3 per cent after global brokerage firm Morgan Stanley said lower taxes and cheaper gas feed costs should de-risk outlook and boost earnings.

The scrip gained 3.22 per cent to close at Rs 1,278.55 apiece on the BSE. During the day, it jumped 4.83 per cent to Rs 1,298.55.

At the NSE, it rose by 3.09 per cent to close at Rs 1,277.50.

The company’s market valuation jumped Rs 25,304.6 crore to Rs 8,10,488.60 crore on the BSE.

In terms of traded volume, 9.61 lakh shares were traded on the BSE and over 1.6 crore shares at the NSE.

Reliance Industries’ earnings growth is starting to be de-risked, amid improving earnings growth clarity, better refining margins, lower tax rate, and cheaper gas feedstock costs, global brokerage Morgan Stanley said, noting that company’s tax liability will reduce by 4 percentage points following cut in the corporate tax rate.

The brokerage went on to list the reasons for its assessment — rise in refining margins with improved demand and slower capacity growth; cheaper gas costs and improved margins from a slowdown in petrochemical capacity growth in 2020, in particular for polyethylene, supporting the rise in chemical margins; and telecom subscriber addition remain steady.

On the impact of last week’s announcement of a reduction in the corporate tax rate, Morgan Stanley said: “We estimate a 400 basis point reduction in the consolidated tax rate RIL‘s businesses paid in F2019 of 29-35 per cent, much higher than the new corporate tax rate of 25.2 per cent.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: