Advertisement

Home / Business / Earnings worry pulls down Reliance stock

Earnings worry pulls down Reliance stock

In 4 days, the shares have plunged 10.79 per cent, while its market capitalisation fell Rs 96,256 crore to Rs 7.96 lakh crore
Morgan Stanley downgraded Reliance to equal-weight from over-weight and warned the Mukesh Ambani company's earnings growth could halve in the current fiscal.
Morgan Stanley downgraded Reliance to equal-weight from over-weight and warned the Mukesh Ambani company's earnings growth could halve in the current fiscal.
(Shutterstock)

Our Special Correspondent   |   Mumbai   |   Published 09.05.19, 07:01 PM

The shares of Reliance Industries fell Rs 44.30, or 3.41 per cent, to Rs 1,255.15 on the BSE on Thursday, following a brokerage downgrade.

Morgan Stanley downgraded Reliance to equal-weight from over-weight and warned the Mukesh Ambani company's earnings growth could halve in the current fiscal.

The Reliance stock has been on a downhill, falling for the fourth day in a row on Thursday.

In four days, the shares have plunged 10.79 per cent, while its market capitalisation fell Rs 96,256 crore to Rs 7.96 lakh crore.

Morgan Stanley said the lower availability of crude from Venezuela and Iran and a glut in polyester and gas market will hit the company’s earnings.

“Upside appears limited amid core business drags, with no material capacity adds,” Morgan Stanley said.

The brokerage has set a price target of Rs 1,349.

Analysts at Jeffries have given an underperform call on the stock and has forecast price to reach Rs 990 in 12 months, a fall of 21 per cent from current levels.

Jeffries has expressed concern on the uncertain free-cash flow of the company. 



Advertisement
Advertisement
Advertisement
 
 
 
Copyright © 2020 The Telegraph. All rights reserved.