HSBC cuts target for RIL on lower gas output, stock down

HSBC has cut the target price for Reliance Industries (RIL) to Rs 800 from Rs 870 while maintaining a ’neutral’ rating as it expects gas production to decline and reach half its previous peak of 60 mmscmd before ramping up.

It did not expect petrochemical margin to improve in the near-term, given the weak demand outlook and saw continued fall in gas production with no maintenance work planned to arrest the decline, HSBC said in a note.

It also expects RIL to report sequentially lower earnings in the next two quarters. At 3:00 pm, shares were down 1.4 percent at Rs 737.50.

Reuters