Refining Margin On Recovery Path For RIL

New Delhi: One of the two drivers of Reliance Industries Ltd’s (RIL) recent underperformance - weak refining margin - has reversed, but the other, poor-retail top-line growth, is difficult to anticipate, brokerage JP Morgan said in a report. Reliance stock is down 22 per cent from its peak on July 8 (Nifty down 3.3%), sharply reversing outperformance from earlier in the year.

In a market where most stocks are trading well above historical valuations, Reliance’s fair relative valuations are an attraction. The company helmed by billionaire Mukesh Ambani has three main business verticals - oil refining and petrochemical business housed in oil-to-chemical (O2C) unit, telecom arm Jio and retail.