Yesterday, shares of India's largest private sector enterprise, Reliance Industries (RIL), jumped nearly 4% on the Bombay Stock Exchange, pushing the benchmark index to gain 218 points.
The scrip, which opened on a positive note at Rs 1,030, settled the trade at Rs 1,066.80, higher by 3.80% over its previous close on the BSE. Earlier, the stock had touched an intra-day high of 4.11% at Rs 1,070.
In an interview with CNBC-TV18, SP Tulsian of sptulsian.com, spoke about his outlook for RIL.
Below is a verbatim transcript of an exclusive interview with SP Tulsian on CNBC-TV18. Also watch the accompanying video.
Q: There is talk that Reliance should see substantial jumps in its gross refinery margins (GRMs) in the fourth quarter, is that likely?
A: There has been an increase in the GRM in the past couple of months. We have seen that getting reflected in the stock price of standalone refineries like Chennai Petroleum and MRPL.
There has been an increase, but I don't think that can really make a substantial jump because there has been some bottom-line indications for the fourth quarter for RIL, which have been pointing it out to be at Rs 5500 crore or Rs 5600 crore. In my view it looks to be quite aggressive. There are combination of factors which are leading the share price to move to these levels.
Q: Do you think it is unlikely that RIL could report USD 9 per barrel GRM in the fourth quarter?
A: That looks unlikely because there has been an increase in the next one or one and a half month or the first month. January has been flat. On an average it can really hit even USD 9 because it could only be in the vicinity of about USD 8 per barrel.
