Rs 1,550, more upside for RIL stock will be difficult: Sanjiv Bhasin, IIFL

Sanjiv Bhasin of IIFL hair-splits the June quarter earnings numbers of RIL in an interview with ETNow. Excerpts

ET Now: How do you analyse what Reliance has done with GRM, the fact that other income has been much lower than Street estimates and the overall trajectory of the petchem business has been good. What is all of this leading up to for a stock that has already gained almost 11.5 per cent in last three months? Is there further headroom for the RIL stock and is there scope for all those retail participants who have missed out on the rally to get into the stock now?

Sanjiv Bhasin: We will go a year back when the margins were very strong and oil was trading at close to $60 at that time. People were not taking that into account because the stock was underperforming at Rs 1,000 and now at Rs 1,500 it seems too good to be true. Like you said, with oil at $45, petchem margins expanding 300 bps and GRMs at $11.99 do not seem sustainable on the face of it. RIL deserves kudos for this. At Rs 1,550, it will be very difficult to see an upside. Our call would be that either you do an SIP and wait for the next three-four months, because the stock has to consolidate, but immediately everyone is looking forward to what the guidance is and what the AGM will do. At Rs 5 lakh crore market-cap, I think there is little bit upside, maybe very little. But consolidation/more guidance about how the future plans will look like will be key to what most investors are looking for.