Buy Reliance Industries, target of Rs 3344: Angel

Angel Broking has maintained its buy rating on Reliance Industries with target price of Rs 3344 in its July 25, 2008 research report. "RIL once again reported a good set of numbers for 1QFY2008. Revenues jumped by 40.8% yoy to Rs 41,579 crore (Rs 29,524 crore) surpassing our estimate of 27.5% yoy growth. Revenues increased substantially owing to the strong performance clocked by the Refining segment. Crude processing at the Jamnagar refinery was at 8.13mn tonnes (8.01mn tonnes) implying 98.5% capacity utilisation."

"The company is expected to commence gas production from KG basin towards end August 2008, which will start contributing to Earnings 2QFY2009 onwards. The gas pricing issue between RIL and RNRL is expected to be resolved before commencement of gas production. Crude production from RIL’s MA field is also anticipated to commence 2HFY2009 onwards. Hence, RIL’s E&P initiative going ahead is expected aid Earnings growth. The stock is currently available at 12.6x FY2010E FDEPS of Rs 170.9. We maintain a Buy on RIL, with a SOTP target price of Rs 3344," says Angel's research report.

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