| Date: |
11-05-2013 |
| Subject: |
Reliance Industries to benefit from polymer duty hike |
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Reliance Industries is likely to emerge as the biggest beneficiary after the government raised import duty on polymer products from 5 per cent to 7.5 per cent effective Thursday. The hike in import duty will be applicable on products like PE, PP, PVC, PS and ethyl vinyl acetate.
The hike in duty will lead to increase in import-parity prices of these products, helping companies like Reliance Industries, Gail India and Indian Oil Corporation. The higher duty will help producers increase costs for downstream converters.
Analysts said RIL's earnings per share (EPS) is likely to go up by 3.2 per cent for fiscal 2013-14, while Gail India and IOC EPS may see upsides of 1.3 per cent and 1.2 per cent respectively.
RIL shares traded down 0.34 per cent at Rs. 815.35 as of 11.17 a.m. Gail India shares were up 0.2 per cent to Rs. 340.50, while IOC shares traded with over 1 per cent gains at Rs. 297.
Source : profit.ndtv.com
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