Oil Ministry moves Cabinet to deny RIL higher gas price - Angel Broking

Oil Ministry aims at moving the Cabinet in order to deny Reliance Industries (RIL) higher gas price until it meets the previously targeted gas output from its KG D6 block. The output from the block has fallen to 15mmscmd currently compared to its target of producing 60mmscmd. The government has decided to nearly double the prices of all the domestically produced gas effective April 2014. Moreover, the government had agreed to consider the change in gas price April 2014, irrespective of gas production for RIL's block. Hence, we maintain our estimates and our Accumulate rating on the stock with a target price of Rs. 953.

Source : Equity Bulls

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