Cheap Venezuelan crude could add up to Rs 12,600 crore to RIL’s EBITDA. What investors should know
Reliance Industries set out an expansion in a quarterly results development.
· ET Stocks, Economic Times Markets
Reliance Industries could benefit from renewed access to discounted Venezuelan crude, which may boost refining margins at its Jamnagar complex. YES Securities estimates that every $1-a-barrel expansion in blended gross refining margins could generate around Rs 4,200 crore in annualised EBITDA.
The analysis
Reliance Industries reported Rs 12,600 crore and Rs 4,200 crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -1.2% on the day at ₹1,156.00, and has returned -11.4% over three months. It sits 27% below its 52-week high, which means a good deal of bad news was already in the price. The oil & energy sector has moved -2.9% over the same period, so Reliance Industries is running 8.5 points behind its peers.
For Reliance Industries, the question is how much of this is already reflected in the price and how much re-rates the oil & energy peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is RELIANCE.
- Sector exposure: Oil & Energy.
- The immediate tone of coverage reads positive.
In this story
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