Karvy Stock Broking Limited has maintained ‘buy’ rating on Reliance Industries Limited (RIL) stock with an intraday target of Rs 2250.

According to Karvy, interested traders can purchase the stock between Rs 2200-2210 with a strict stop loss of Rs 2175. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 2255.
 
Shares of the company, on Tuesday (Sep 02), closed at Rs 2213.55 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1002154. Current EPS & P/E ratio stood at 137.16 and 15.83 respectively. The share price has seen a 52-week high of Rs 3252.10 and a low of Rs 1922.50 on BSE.

The stock has great potential to rise as it showed good improvement in last few trading sessions. It will achieve the target price as the company has healthy growth plans and well-built operating capabilities.

On Sep 02, Reliance Industries (RIL) dropped its plan to get hold of Unifi Kinston, the polyester manufacturing arm of US based polyester-manufacturer Unifi.

The company’s US subsidiary, Reliance Industries USA, had signed up a deal with Unifi in June 2008 for acquiring all assets and structures situated at the Unifi Kinston’s polyester construction plant for $12.2 million.

RIL, on Sep 01, announced that it is ready to commence production from the biggest gas discovery in the world at Krishna-Godavari(KG) basin, within a few months.

It is also learnt that the East-West pipeline and facilities at KG basin are nearing finishing point.

Reliance Industries, on August 26, stated that it desired to relocate an 80 percent stake in a gas-rich deepwater block to four fully-owned arms.

On the standalone basis, RIL’s quarterly profit for the first quarter ended June 2008 rose 25.92% to Rs 41,100 million from Rs 32,640 million in the same quarter, last year.

The company reported EPS of Rs 28.30 per share during the quarter, posting 20.94% growth over previous year period.

Net sales during the quarter climbed 48.20% to Rs 415,790 million, whereas total income zoomed 48.45% to Rs 418,050 million, when compared with the prior year period.

During the quarter, interest cost increased 2.08% to Rs 2,940 million while depreciation cost rose 20.15% to Rs 11,510 million over previous year period.

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