MUMBAI: A leading brokerage house on Tuesday asked Reliance Industries Limited (RIL) to increase its disclosure level while pointing out that it was not providing key information such as gross debt and cash position and capex breakdown for the past few quarters.
Urging the country's biggest corporate entity to lead by example in “the current environment of mistrust suspicion”, analysts at Kotak Institutional Equities Research said in a research note that the company has stopped providing some key disclosures for the past few quarters.
“We appeal to the RIL management to increase the level of disclosures commensurate with the size and complexity of the company,” the analysts said while noting that the company was “of course, complying with statutory disclosures”.
An e-mail query to RIL spokespersons for their comments on the report remained unanswered. The brokerage firm has also downgraded its rating on the stock and has reduced its earnings estimates for the company for the fiscal years between FY10-12.
The analysts said that RIL's current price does not safeguard against “potential further deterioration in RIL's core chemical and refining business or an unfavourable outcome (of) several non-operating matters” such as RIL-RNRL court case and taxation st atus of RIL's EOU refinery.
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