This Article is From May 15, 2013

Reliance Infra shares top Nifty, surge 4% on Q4 earnings

Reliance Infra was in focus on Wednesday as shares in the Anil Ambani promoted firm gained 4 per cent to top the 50-share Nifty benchmark.

Reliance Infra had reported higher than expected net profit in the March quarter on Thursday. The company reported a standalone net profit of Rs 599 crore in the March quarter, down 9 per cent from Rs 658 crore in the corresponding quarter of last fiscal, but higher than expectations on the back of Rs 228 crore in tax write-back.

Standalone sales slumped 32 per cent to Rs 3,919 crore from Rs 5,730 crore a year ago, but more than Street estimates.

Reliance Infra shares traded 3.85 per cent higher at Rs 404.10 on the BSE as of 10.50 a.m.

Last month, Morgan Stanley had upgraded Reliance Infra to "overweight" from "equal weight" and raised its target price to Rs 576 from Rs 489, citing favourable risk reward as price-to-book valuation multiples are at all-time lows.

The investment bank adds that the recent deal between Reliance Communications and Reliance Industries Ltd's telecom unit Reliance Jio Infocomm may improve investors sentiment around Reliance Infra.

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