Motilal Oswal remained 'Neutral' on Reliance Industries (RIL) with target price of Rs 965 as against current market price (CMP) of Rs 927 in its report.

RIL reported inline 4QFY15 standalone EBITDA at Rs 86 billion (+4% YoY, +20% QoQ) and PAT above estimate at Rs 62.4 billion (+11% YoY, +23% QoQ) helped by lower interest cost. Strong operating performance in 4QFY15 was boosted by higher GRM. While the new core projects commissioning is 12 months away, clarity on telecom business has become critical with capital employed reaching USD 14 billion (17% of total capital employed, 29% of market capitalization).

Commenting on the investment rationale, Motilal Oswal said, ''Large non-core investments even if accretive over long-term; gains will be backended, diluting overall return ratio in the interim. On FY16E basis, the stock trades at 12x adj. EPS of Rs 85 and EV/EBITDA of 9.3x. SOTP-based target price stands at Rs 965/sh. Neutral.''

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