Bullish on RIL due to gas price hike, capex plans, better GRMs: ICICI Securities

In a chat with ET Now, Ravi Muthukrishnan, Co-Head Research, ICICI Securities, shares his views on Reliance. Excerpt:

ET Now: You are bullish on Reliance and your target price for Reliance is Rs 1120 which is the most bullish target on the street. What are betting on: gas prices moving up or petrochemical demand coming back?

Ravi Muthukrishnan: In case of Reliance Industries, they are doing a huge amount of capex which will give them benefits in the future.

This report is not about the current but about the long term. Hence, this capex should fructify in the future. That is why Reliance is a good bet.

The gas price hike should be beneficial for the company, if the gas hoarding issue takes a backseat in the future.

The GRMs which have been bad last quarter seems to be improving now. In the last couple of days, we have seen the GRMs improving; we see that because of the investments and because of the gas price hike, it should give them substantial benefits.