InvestorQ : How will the decision of Saudi Aramco to invest in RIL likely to benefit the stock of Reliance Industries?
Priyanka Jain made post

How will the decision of Saudi Aramco to invest in RIL likely to benefit the stock of Reliance Industries?

Answer
image
Swati Naik answered.
3 years ago
Follow

Saudi Aramco, the world’s largest and most profitable oil company has agreed to take a 20% stake in the oil and chemicals business of Reliance Industries Ltd. for $15 billion. This is top dollar valuations because this values the refining and chemicals division of RIL at nearly $75 billion. If you add the value of the telecom and the retail business, which is valued at nearly $65 billion as per conservative estimates then based on the likely deal you are looking at an overall valuation of RIL at closer to $140 billion. The stock quotes at a valuation of around $110 billion currently and that leaves an approximate upside of around 25% on the stock. While, that is not any statement on the likely price movement, this deal has surely made RIL look undervalued at this point of time.

35 Views