MUMBAI: Shares of Reliance Industries have surged over 12% in the past week on hope of big earnings upgrades due to the rise in petrochemical spreads. CLSA, however, believes that earnings upgrades are unlikely. The brokerage said the absence of any mention of a deal with Saudi Aramco in RIL NSE -0.87 %’s annual report means that the deal is not imminent and this may limit near-term upside for the valuation of its oil-to-chemicals business.
Shares of Reliance Industries ended down 0.8% at ₹2,190.60 after gaining 12.45% in the last seven sessions.
CLSA said stronger crude prices and progress on the oil-to-chemicals business demerger had raised hopes of an action for the stake sale to Saudi Aramco announced in August 2019.
