RIL Intraday Buy Call

Karvy Stock Broking Limited has maintained ‘Buy’ rating on Reliance Industries RIL Intraday Buy CallLtd (RIL) stock with an intraday target of Rs 2265.

According to Karvy, day traders can purchase the stock above Rs 2220 with a strict stop loss of Rs 2200. The stock pricing becomes more attractive, and reach above Rs 2269, if the stock market remains on positive track.

Shares of the company, on Tuesday (August 19), closed at Rs 2221.35 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 690128. Current EPS and P/E ratio stood at 137.16 and 16.29 respectively. The share price has seen a 52-week high of Rs 3352.10 and a low of Rs 1717.00 on BSE.

The outlook for the stock is really very strong, and it will really outperform the market in today’s session.

Moreover, RIL is making cautious efforts to swell its market share, expand its business, influences its asset quality and put more pressure on client service to amend its profile and fight increasing rivalry.

RIL has decided to export diesel from its forthcoming refinery at Jamnagar in Gujarat to Pakistan after Islamabad last month permitted import of fuel from India.

Pakistan, during the last month (July 2008), announced flourishing bilateral trade with India by granting more imports that includes diesel and fuel oil.

The company is hoping to commission its 29 million tons per year export-oriented unit by October 2008, and Pakistan will be one of the places in addition to the US and Europe of the high value fuel it will produce.

Reliance Industries (RIL), on Aug 14, signed up a 50-50 joint venture (JV) deal with US-based realty investment trust Vornado to jointly invest around $500 million in a shopping mall.
On August 13, Reliance Retail, an arm of RIL, has signed up an exclusive pan-India franchise deal with the UK-based Hamleys, to bring the latter’s toys to the Indian market.

The company announced a considerable growth in its standalone net profit for the three month period ended June 2008.

During the quarter, the company’s net profit surged 25.92% to Rs 41,100 million from Rs 32,640 million during the corresponding period of the last year.

The company’s EPS for the period stood at Rs 28.30 per share, which showed 20.94% growth over last year period.

The net sales for the quarter climbed up 48.20% to Rs 415,790 million, whereas total income for the quarter jumped 48.45% to Rs 418,050 million.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Larsen, Grasim, Voltas and Century.