Maintain 'hold' on RIL - Geojit BNP Paribas Financial Services

- The stock rallied after the company agreed to let the CAG to audit its books and the empowered group of ministers (EGoM) to discuss revision on gas price. However, it seems that none of the events warrant a steep run up in the share price.

- While refining has shown a minor uptick, petchem business continues to remain weak.

- It seems that the market is looking at the company's E&P potential. While the CAG development is a minor positive, it is unlikely to change the E&P landscape of the company.

- Contributions from the R-Series and Satellite fields with an USD8/ mmbtu of gas price may add around Rs.20 per share value, but this is at least three/ four years away.

- Maintain 'hold' rating but investors are not advised to build fresh positions at the current levels.

Source : Equity Bulls

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