Clarity on gas pricing will be a boost of confidendce for RIL stock: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Shares and Securities, shares his views on RIL.

ET Now: Seems like Reliance is getting closer to a resolution to the gas pricing issue and a step closer to higher prices as well as higher gas production, would it be a buying opportunity right now in the stock then?

Deven Choksey: Yes, at least an overhang on this particular stock particularly from the gas pricing point of view would get cleared and that could possibly make the life easy for all of us.

As far as the stock is concerned and the fundamentals of the companies are concerned, it will take probably some more time to get reflected into the profit performance of the company.

Certainly, if this policy move comes out clear and if the gas price hike is allowed then in such situation confidence for the company to take the initiatives to go for the further exploration and explore gas could remain on a higher side.

Whatever we have understood in this particular game plan it would probably take financial year 2016-2017 for Reliance to get actual effect of higher production and in turn the benefit of the higher gas prices they get it. But nonetheless it would be a good move as far as government is concerned to clear this particular dust from the air.