Reliacne Industries to do well: Vikas Khemani, Edelweiss Securities Ltd
A credible partner like BP coming in gives lot of credibility and RIL stock will definitely do well.
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| Vikas Khemani, Executive Vice President & Head - Institutional Equities, Edelweiss Securities Ltd, in a chat with ET Now talks about Reliance Industries Ltd.
What is your reaction to the big news concerning Reliance?
It is great news as far as the Reliance is concerned. Of late, refining and petrochemical business was doing very well. Despite that, Reliance stock was not performing very well. The big reason for that was market was worried about their E&P business whether that ramp up was not happening, what was the key reason behind that - was it the execution issue or availability of cash?
So a lot of uncertainties were there around the E&P business. With BP coming in, it gets settled both in terms of going forward ramp up will happen or not and the establishment of the value. Most analysts had estimates about the E&P business - it varied between $20-30 billion.
A credible partner like BP coming in gives lot of credibility and stock will definitely do well. We have had 1-1.5 years of underperformance of the stock. So most of the fund managers, who were sort of underweight on the stock, would look to either go equal weight or probably overweight.
What is your reaction to the big news concerning Reliance?
It is great news as far as the Reliance is concerned. Of late, refining and petrochemical business was doing very well. Despite that, Reliance stock was not performing very well. The big reason for that was market was worried about their E&P business whether that ramp up was not happening, what was the key reason behind that - was it the execution issue or availability of cash?
So a lot of uncertainties were there around the E&P business. With BP coming in, it gets settled both in terms of going forward ramp up will happen or not and the establishment of the value. Most analysts had estimates about the E&P business - it varied between $20-30 billion.
A credible partner like BP coming in gives lot of credibility and stock will definitely do well. We have had 1-1.5 years of underperformance of the stock. So most of the fund managers, who were sort of underweight on the stock, would look to either go equal weight or probably overweight.
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