May 9, 2019 / 5:24 AM / 2 months ago

BUZZ-Morgan Stanley downgrades India's Reliance Industries, sees pressure on earnings

** Brokerage Morgan Stanley downgrades Mumbai-based conglomerate to “equal-weight” from “over-weight, says earnings growth could halve in fiscal 2020

** Shares of Reliance Industries Ltd dip ~3 pct to 1,258.35 rupees, their lowest in more than two months; drag broader NSE index

** Lower availability of Venezuelan/Iranian crude, glut in polyester and gas markets to hit earnings - Morgan Stanley

** U.S sanctions on Venezuela have curtailed availability of heavy crude from the country

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

** “Expect consensus earnings expectations will see their first material cut by 2H19 of 17-20%,” the brokerage says

** Consensus estimate for FY20 net income is 494.79 bln rupees ($7.08 bln) - Refinitiv Eikon data

** Reliance Industries’ competitors Indian Oil Corp Ltd slipped marginally, while Oil and Natural Gas Corp edged up 0.2 pct

** Shares of Reliance Industries up ~16 so far this year

$1 = 69.8610 Indian rupees

0 : 0
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