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Maintain buy on RIL, target price Rs 1550: CLSA

Posted on: March 2nd, 2009 and is filed under Brokerage Recommendations.

Following the Reliance Industries (RIL) and Reliance Petroleum (RPL) merger, CLSA (Credit Lyonnais Securities Asia) has said they will keep a buy on RIL post swap ratio and that they have a target of Rs 1,550 per share. The firm also said that RPL merger will not change RIL EBITDA profile.

The broking firm sees a free cash flow of USD 4.5–5 billion for RIL over the next two years while it sees 0.4–1.4% EPS accretion for RIL post the RPL merger.

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