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Reliance Industries
Reliance may not fall below 1700 in 2008
Posted by :
marketmanTracked by: 1 Boarder
Dear aditya,oil production business is important to ril,based on those profits stock market investors giving high valuations to the stock.... now that oil production part will hit with latest proposals.... that is a concern here for investors.... thank you for giving figures of ril business model.......
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : adityabanyal
Dear marketman
65% of Reliance's revenues come from refining business and Chaturvedi report is against imposing windfall tax on refineries. The rest of the income comes from Petchem business. A very small and insignificant portion of the profit comes from Oil production business. As far as gas goes the price has been fixed at $4.2, that too in August 2007, a year ago, so tax on those profits is not possible as there is no windfall gains over there.
So may I know on what premise you are spreading this rumour that profit margins of RIL will fall on account of such a tax?
Aditya 
Reliance and its prospects.
Posted by :
Priyanka-SMTracked by: 0 Boarder
RIL vs RNRL case will most probably be won by Mukesh Ambani on the ground of strong paper work of RIL. The MOU cant not be viewed in present light as prices of gas and petroleum products have changed and government would not like to sell gas at discount to anybody. Why should gas be sold at discount to any other company when it is being sold at a parity price to other consumers. It is a country asset and government should get adequate royalty on it. Next point is,at that time there were two brothers who were benefitting each other but they are warring two companies and there is no mutual interest in the project. Infact, RNRL wants to get subsidy for boosting profits which is absurd, tell me we as consumers wil pay market price, reliance will pay its own natural cost of production, other NTPC, GAIL will pay market price to RIL and only RNRL will pay subsidised price which is almost half of market price; this is completely absurd. The company is planning to produce from the KG-D6 block an estimated 40,000 to 50,000 barrels of oil per day and about tapping 3+ tcf of gas reserves. Now,being a reliance shareholder or without being a reliance shareholder, why will you want this to be sold at below market value. I believe every resource comes at a price and that should be paid. With all these developments post September, I rate Reliance a complete hot buy. This stock in the next 12-18 months should be approaching 4000-5000 rupees. which will be about double the value it is quoting today. Earnings based on the sum of parts value will be boosting the balance sheet towards the next level. This is just the oil and gas. If anybody understands the retail business, then they will agree with me that Retail business in India has the potential of a trillion dollar opportunity just like oil and gas. Retail network is such a huge network in such a large country with such a large population that its potential will be realized post 2010. Reliance with its massive retail scale and exports will be a super power in coming years, i rate its EPS will be moving towards 350+ post 2010 once the entire retail operation gets break even and hypermarkets and small outlets all become functional in all m ajor parts of India. This will give Reliance Industries a valuation close to 7000 as per fully priced towards post 2010. Looking at current valuations even our favourite pan wala will also like to buy this stock.Therefore, this stock is a complete buy on every decline. Keep a bottom of 1800 on any adverse news in 2008, you can keep on buying this. ...
How to solve RIL vs RNRL case?
Posted by : carbonTracked by: 0 Boarder
since RIL and Rnrl demerged 3 years back Ril have to oblige the deal of gas price to be paid by Rnrl ...
Reliance may not fall below 1700 in 2008
Posted by : adityabanyalTracked by: 1 Boarder
Dear kaizoo
you have summarized this issue very rightly.
Aditya...
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : kaizoo
I dont think RIL is impacted by this proposal at all . Rightly put , RIL's refinery business is 65 % of its revenues , 28-30 % business is petrochem , 2-3 % from its oil fields @ PMT , that also may be captively consumed for RIL ' refinery , so RIL will not be effected at all . all other oil producing blocks are outside India through various subsidaries .
I too dont understand why rumors of windfall taxes will hit RIL . I think that the stupid perSON called AMAR SINGH - THE MID WIFE OF MULAYAM SINGH and chota cock of Mr Amitabh Bachchan is busy wasting his time washing dirty linen since joining hands with Govt . Politicians as useless as dirt in garbage .
Reliance may not fall below 1700 in 2008
Posted by : kaizooTracked by: 1 Boarder
I dont think RIL is impacted by this proposal at all . Rightly put , RIL's refinery business is 65 % of its revenues , 28-30 % business is petrochem , 2-3 % from its oil fields @ PMT , that also may be captively consumed for RIL ' refinery , so RIL will not be effected at all . all other oil producing blocks are outside India through various subsidaries .
I too dont understand why rumors of windfall taxes will hit RIL . I think that the stupid perSON called AMAR SINGH - THE MID WIFE OF MULAYAM SINGH and chota cock of Mr Amitabh Bachchan is busy wasting his time washing dirty linen since joining hands with Govt . Politicians as useless as dirt in garbage . ...
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : adityabanyal
Dear marketman
65% of Reliance's revenues come from refining business and Chaturvedi report is against imposing windfall tax on refineries. The rest of the income comes from Petchem business. A very small and insignificant portion of the profit comes from Oil production business. As far as gas goes the price has been fixed at $4.2, that too in August 2007, a year ago, so tax on those profits is not possible as there is no windfall gains over there.
So may I know on what premise you are spreading this rumour that profit margins of RIL will fall on account of such a tax?
Aditya
Reliance may not fall below 1700 in 2008
Posted by : adityabanyalTracked by: 1 Boarder
Dear marketman
65% of Reliance's revenues come from refining business and Chaturvedi report is against imposing windfall tax on refineries. The rest of the income comes from Petchem business. A very small and insignificant portion of the profit comes from Oil production business. As far as gas goes the price has been fixed at $4.2, that too in August 2007, a year ago, so tax on those profits is not possible as there is no windfall gains over there.
So may I know on what premise you are spreading this rumour that profit margins of RIL will fall on account of such a tax?
Aditya ...
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : marketman
Pvt oil companies may loose 50% of gains due to impossition of special oil tax.... this new govt proposal may reduce profit margins of reliance....
RIL weak in short term
Posted by : atushikTracked by: 0 Boarder
chaturvedi committee report is certainly a big dampener of current sentiments in RIL-though govt is unlikely to accept this report in its present form, bears may take advantage of it to push the stock price downwards may be to below 2000 levels!Remain alert == !!...
Reliance Windfall Tax
Posted by : adityabanyalTracked by: 0 Boarder
BK Chaturvedi report as i can see will have a neutral impact on RIL. The report is against imposing windfall tax on refineries and most of RIL's income comes from the refining business. As far as windfall tax on exploration and production is concerned, which the report suggests, it will have no impact on RIL as RIL still has no significant revenue from the production of Oil, and as far as Gas production is concerned, RIL will sell gas at US$4.2 per mmbtu price, fixed by the government and which is oil equivalent of just about $25 per barrel as against the prevailing market price of about $120. Therefore if there is no windfall profit from Gas production, the case for windfall profit tax does not arise.
However a company like Cairn which will be producing crude beginning next year may get impacted by such a tax, if such a tax were to be imposed.
Aditya ...
In reply to:
Reliance Windfall Tax
Posted by : Guest
What will be the effect of BK Chaturvedi report on this stock? Is it worth staying invested or book out for repurchase at lower levels?
Reliance Windfall Tax
Posted by : marketbearTracked by: 0 Boarder
better to book profits now and buy at lower level. Surroundings are not good for Reliance as everyone is ganging up against this index heavyweight. Windfall tax, subsidy sharing, court case, allegations. These news are not good for the stock according to everyone and it almost clear. So stock will suffer a setback today and can open down by 50 odd rupees atleast and can loose upto 100 rupees today...
In reply to:
Reliance Windfall Tax
Posted by : Guest
What will be the effect of BK Chaturvedi report on this stock? Is it worth staying invested or book out for repurchase at lower levels?
Reliance Windfall Tax
Posted by : GuestTracked by: 0 Boarder
What will be the effect of BK Chaturvedi report on this stock? Is it worth staying invested or book out for repurchase at lower levels?...
Reliance may not fall below 1700 in 2008
Posted by : marketmanTracked by: 1 Boarder
Pvt oil companies may loose 50% of gains due to impossition of special oil tax.... this new govt proposal may reduce profit margins of reliance.......
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : marketman
Though the many analysts are not bullish on this counter in the near term,the scrip may not fall below 1700 during this calender year....
Reliance may not fall below 1700 in 2008
Posted by : KARUNASTracked by: 1 Boarder
Wait and watch for the good things to happen in RIL...
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : marketman
Dear karuna,we market participants have been expecting the same for the past one year.... even that news may not create interest in market circles in present circumstances.... if bonus announcement of 1:1 is there,the scrip may not fall below 1900 during this year....
Reliance may not fall below 1700 in 2008
Posted by : marketmanTracked by: 1 Boarder
Dear karuna,we market participants have been expecting the same for the past one year.... even that news may not create interest in market circles in present circumstances.... if bonus announcement of 1:1 is there,the scrip may not fall below 1900 during this year.......
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : KARUNAS
There are very strong indications emerging about the bonus very soon. Stay alart....... buy at CMP.
2100 level within couple of sessions
Posted by : marketbearTracked by: 0 Boarder
Reliance likely to touch level of 2100 over next couple of sessions and global bad news can hit this stock most on the back negative domestic news also...
Reliance may not fall below 1700 in 2008
Posted by : KARUNASTracked by: 1 Boarder
Mind it that Amar Singh is just match of RIL (Mukesh Bhai)...... just a peanut..... can be crushed any time...... will take SP to its own dea.............
In reply to:
Reliance may not fall below 1700 in 2008
Posted by : sridharan_dusi
dear Karunas
Perhaps the bonus speculation is fired to counter the Amar Singh moves against Reliance. If the speculation becomes a reality it would act surely as a positive trigger. Of course people were expecting bonus from Reliance since quite time. But the demerger subsituted it and resulted in wealth creation to the investors in many ways.
Sridharan
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