RIL may underperform markets in short-to-medium term: Angel Broking

NEW Delhi: Reliance Industries surged as much as 4.75 per cent in trade today to clock its biggest percentage gain since July 2014. While buying by LIC and positive comments by foreign brokerage CLSA boosted sentiment on the counter, domestic brokerage Angel Broking believes that the stock may under-perform broader markets in the short-to-medium term.

You might see spurts in the stock for some reason or the other, but we expect Reliance may underperform the broader markets from a short-to-medium term perspective," said Mayuresh Joshi of Angel Broking in an interview to ET Now.



The expert said that there have been a couple of issues that are creating havoc on the stock including the corporate espionage case.



The analysts pointed out that the core return on equity ( ROE) is still below 13 per cent.



"It will take another 18 to 24 months for any improvement. Investors need to be patient with this stock. If the commodity cycle turns for the better over the next year, Reliance will definitely outperform the industry in terms of the capex that it is putting in both in its core and non-core businesses," Joshi said.