RIL hits 52-week low ahead of Q2 results

Reliance Industries fell 4.63% to Rs 1254.70 at 10:43 IST on BSE, on prospects of a muted growth in bottomline Q2 September 2008.

Meanwhile, the BSE Sensex was down 310.13 points, or 3.05%, to 9859.77.

On BSE, 3.73 lakh shares were traded in the counter. The scrip had an average daily volume of 14.19 lakh shares in the past one quarter.

The stock hit an intraday low of Rs 1231, also its 52-week low. It hit a intraday high of Rs 1300 so far during the day. The stock had a 52-week high of Rs 3252.10 on 15 January 2008.

The stock had underperformed the market over the past one month till 22 October 2008, declining 35.42% as compared to the Sensex's decline of 27.33%. It had also underperformed the market in the past one quarter, falling 38.93% as compared to the Sensex's decline of 27.89%.

India's largest private sector firm 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 1254.70 discounts its Q1 June 2008 annualised EPS of Rs 113.07, by a PE multiple of 11.09.

Fall in refining margin due to sluggish demand for petroleum products in key western markets, is seen weighing on Reliance Industries (RIL)'s Q2 results which are due toady. Marketmen estimate RIL's gross refining margins (GRM) in the $11-13 per barrel range, weaker from $15.7 posted in June 2008 quarter and $13.7 in September 2007 quarter. The GRM is the difference between the selling price of the finished products and raw material cost.

The company reported 13.2% rise in net profit to Rs 4110 crore on a 40.8% rise in sales to Rs 41579 crore in Q1 June 2008 over Q1 June 2007.

On 22 September 2008, Reliance Industries (RIL) said it had started production of crude oil at KG-D6 block of the Krishna Godavari basin. The field will initially produce about 5,000 barrels of crude per day and is expected to reach its peak production of 5,50,500 barrels of crude per day over the next six to eight quarters.

On 3 October 2008, Reliance Industries said it has alloted 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.

Reliance Industries 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, India that produces a wide range of products such as gasoline, superior kerosene oil and liquified petroleum