Would recommend buying RIL on dips: Parag Thakkar

In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, shares his view on Reliance Industries.

ET Now: Reliance Industries, a lot of people are of the view that this is a stock for 2016 in the large cap universe, your target price for the same is Rs 1,100. Is that the immediate target price, would you review it post the numbers if the numbers are good?

Parag Thakkar: So, basically, it is based on FY17 earnings. We will upgrade it when it comes to FY18. See, fortunately, for Reliance what has happened is earlier we thought that when they will start this petrocoke gasification project then their margins will expand by $2. We thought that when this will actually start, refining margins globally would have come down but this is a situation where already margins are very good and now again they are getting further cushion of $2. All good things are combining for them, but definitely we have to see how the 4G initiative pans out. So at any dips it looks like a good buy, especially, when we know that results are on the 19th of this month and there is going to be a very good number.