Gains On Plan To Restart Fuel Retailing Has Equity - Nov 22, 2008

Meanwhile, the BSE Sensex was up 130.14 points, or 1.54%, to 8581.15.On BSE, 22.64 lakh shares were traded in the counter. The scrip had an average daily volume of 18.10 lakh shares in the past one quarter.The stock hit a high of Rs 1114 and a low of Rs 1021 so far during the day. The stock had a 52-week high of Rs 3252.10 on 15 January 2008 and a 52-week low of Rs 930 on 27 October 2008.

The stock had underperformed the market over the past one month till 20 November 2008, declining 19.88% as compared to the Sensex's 17.33% decline. It had also underperformed the market in the past one quarter, falling 52.83% as compared to the Sensex's fall of 42.42%.

India's largest private sector company by market capitalisation and oil refiner has an equity capital of Rs 1573.79 crore. Face value per share is Rs 10.

The current price of Rs 1073.80 discounts its Q2 September 2008 annualised EPS of Rs 113.40, by a PE multiple of 9.46.

As per recent reports, Reliance Industries that had shut down all its petrol pumps because of huge losses after crude oil price soared, has now written to the government to start fuel pumps again. Since the crude prices have fallen to the lowest level in three years, companies operating private fuel pumps can hope to start pushing sales more aggressively.

Meanwhile, RIL is reported to have raised Rs 1000 crore today (21 November 2008), through an issue of bonds. The five-year bonds carry a coupon rate of 11.45%, report suggested. Earlier on Wednesday, 19 November 2008, some reports had suggested that the company may raise Rs 5000 crore from the Life Insurance Corporation of India via 11.5% non-convertible debentures.

Reliance Industries (RIL)'s net profit rose 7.4% to Rs 4122 crore on 39.8% growth in net sales to Rs 44787 crore in Q2 September 2008 over Q2 September 2007.

On 3 October 2008, RIL said it had allotted 12 crore equity shares of face value Rs 10 each to various promoter group firms upon exercise of rights attached to warrants held by them. These equity shares would be subject to a lock-in for a period of three years from the date of allotment of the warrants. The conversion price for the warrants is Rs 1,402 per share.

RIL manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, Gujarat that produces a wide range of products such as gasoline, superior kerosene oil and liquified petroleum gas.