KIM ENG maintains ‘Buy’ on Reliance Industries

MUMBAI: KIM ENG India has maintained ‘Buy’ call on Reliance Industries even as the company has announced plans to acquire LyondellBasell.

“Reportedly, Reliance Industries may pay between US$6bn to US$12bn for Lyondel. We do not expect a deal in the near term, given lots of red tape involved and a due diligence of assets, which has not yet begun. Others bidders include Sinopec of China and several large private equity companies. Our BUY rating for the stock is supported by FY10F EPS growth of 20% following from increasing gas sales,” the update note said.