IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends ‘Add’ on Reliance Industries.
The company’s 1QFY12 PAT, refining EBIT and E&P were ahead if IIFL’s estimates while petchem was below estimates.
IIFL believes the clarity which emerged from the exploration and production segment with the proposed drilling plan of three new development wells in KG-D6 in FY12 and further drilling in FY13 depending on the results, and BP’s investment approval in Reliance’s upstream acreage would improve visibility in the key segment.
The brokerage has maintained its FY12 and FY13 EPS estimates. “We believe the E&P strategy’s progress post BP’s induction by end-FY12 would aid stock performance,” IIFL stated.
The report was published by IIFL’s Institutional Equities Research desk.