Positive on Reliance Industries: Abhijit Chakraborty, Fortune Financial Services India Ltd
Post the BP deal, there has been more clarity that on the valuation ascribed to its E&P business.
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| Abhijit Chakraborty, Sr. VP, Institutional Equities, Fortune Financial Services India Ltd, in a chat with ET Now talks about Reliance Industries.
What’s your call on Reliance Industries and does it seem like post the BP deal, the E&P concerns are now laid to rest?
Post the BP deal, definitely there has been more clarity that has emerged on the valuation ascribed to its E&P business. But that has not exactly been a very big positive because it somehow is a discount to what the analysts from the Street were giving - the valuation to E&P business.
For the quarter, for the short term, what can be a very big positive for Reliance is the continuous improvement in the petrochemical margin. In the last couple of weeks also, the entire product chain in the petrochemical segment has seen an improvement in the spreads and the refining margins have also improved.
Therefore, the earnings for fourth quarter is going to be good. Given the fact that crude is also going up continuously, the overall earnings momentum is going to be strong for Reliance and, therefore, I would be positive on the stock.
What’s your call on Reliance Industries and does it seem like post the BP deal, the E&P concerns are now laid to rest?
Post the BP deal, definitely there has been more clarity that has emerged on the valuation ascribed to its E&P business. But that has not exactly been a very big positive because it somehow is a discount to what the analysts from the Street were giving - the valuation to E&P business.
For the quarter, for the short term, what can be a very big positive for Reliance is the continuous improvement in the petrochemical margin. In the last couple of weeks also, the entire product chain in the petrochemical segment has seen an improvement in the spreads and the refining margins have also improved.
Therefore, the earnings for fourth quarter is going to be good. Given the fact that crude is also going up continuously, the overall earnings momentum is going to be strong for Reliance and, therefore, I would be positive on the stock.
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