Recommendation From Integrated Oil & Gas & Banks Sectors

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

RELIANCE INDUSTRIES LIMITED 

CMP - Rs1509.80
BSE CODE 500325
Volume 826626
Face Value Rs10
Target Rs1600
Stoploss Rs1440(CLS) 

Reliance Industries Limited is one of India’s largest private sector enterprises, conducting business in energy and materials value chain. The company’s business portfolio ranges from energy to materials, retail to digital services and entertainment. For Q2FY20, on a consolidated basis, net sales reported by the company were Rs152,149 crore, which has grown by 4.2 per cent compared to the revenue of Rs146,018 crore for Q2FY19. The PBDT increased by 10.26 per cent to Rs20,316 crore in Q2FY20 as against Rs18,426 crore for Q2FY19. Compared to the net profit of Rs11,298 crore in Q2FY20, it is 18.33 per cent more than Rs9,548 crore gained in Q2FY19. On the annual front, the company has recorded a 44.59 per cent YoY increase in revenue to Rs622,809 crore for FY19. The PBDT for FY19 and FY18 is Rs76,058 crore and Rs66,073 crore respectively. The net profit for FY19 is of Rs39,734 crore, a growth of 10.31 per cent compared to a net profit of Rs36,021 crore in FY18. We recommend BUY.

CANARA BANK 

BSE CODE 532483
Volume 728920
Face Value Rs10
Target Rs240
Stoploss Rs205(CLS) 

Canara Bank's business segments include treasury operations, retail banking operations, wholesale banking operations and other banking operations. The bank has approximately 5,850 branches including more than eight overseas branches. On the consolidated financial front, the net interest earned by the bank in the second quarter of FY20 came in at Rs12,392.14 crore as against Rs11,123.75 crore in the corresponding quarter of the previous fiscal, clocking a growth of 11.4 per cent. The total income in Q2FY20 was Rs14,461.73 crore, an increase by 14.06 per cent from Rs12,679.06 crore in Q2FY19. The profit after tax increased by 21.83 per cent to Rs364.92 crore in Q2FY20 as against Rs299.54 crore in Q2FY19. For Q2FY20 the GNPA percentage was 8.68 per cent as compared to 10.56 per cent in Q1FY19. The CRAR ratio in Q2FY20 was 13.99 per cent and in Q2FY19 it was 12.62 per cent. We recommend BUY.