Maintain 'hold' on Reliance Industries - Geojit BNP Paribas

- The recent rally in Reliance Industries has been driven by a possible increase in gas price and E&P approvals to re-start drilling activities.

- Refining margins remained firm and better than expected in 3QFY13. Petchem remained flattish with little signs of near term demand revival.

- Possible upside is expected from the gas price hike.

- Recent initiatives by the government of India enable the company to renew exploration activities in key fields.

- The initial E&P results will take six to twelve months, after which a case for a possible reserve upgrade could be made.

- While petchem capacity additions are a step in the right direction, the then macro mood will determine EBITDA growth and may be hard to predict.

Source : Equity Bulls

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