BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Although oil prices have risen 24% to ~$61/barrel of oil in CY21 year-to-date, refining margins are yet to show any recovery due to the continued lack of demand on account of Covid-19.
However, petrochemicals demand has been strong, resulting in high margins across most products.
Polyethylene/Polypropylene/ Polyvinyl Chloride margins are at a strong $737/785/779/million tonne in CY21 year-to-date compared with the last 10-year average of $627/601/300/million tonne.
In the last six months, Reliance Industries Ltd. has underperformed Nifty by ~35%, largely due to poor refining margins, uncertainty in retail, and slowing growth in the telecom business.
However, the ongoing oil-to-chemicals restructuring may open up strategic partnership opportunities similar to those seen in other businesses.
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