MUMBAI : Shares of Reliance Industries Ltd (RIL) surged nearly 6% amid expectations that profitability on petrochem segment may improve after polymer spreads hit decade highs.
The stock hit a intraday high of ₹2,095. At 2pm, RIL was up 5.7% at ₹2,091 on the BSE.
According to Jefferies India report, polymer spreads are at decade highs on strong downstream demand. Demand is underpinned by strength in downstream industries, namely automobiles, durables, consumer goods, medical supplies, and packaging.
“RIL’s petchem portfolio spread is tracking 30% ahead of Jefferies’ estimate. Petchem Ebitda could be 50% ahead of Jefferies’ estimate if current spreads sustain in FY22E.
