Sep 06, 2013, 05.32 PM | Source: CNBC-TV18

Hold Reliance Industries for 2-3 yrs: Mayuresh Joshi

Mayuresh Joshi, VP Institution of Angel Broking recommends holding Reliance Industries for the next 2-3 years as the stock can reap excellent dividends.

Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "If one looks at the quarter numbers of Reliance Industries the top-line growth came at Rs 7,600 crore. The refining business provided good EBITDA margins. The refining business came in at around Rs 2,900 crore and aided by other higher income and lower depreciation the profits were anywhere between Rs 5,352 crore."

"One should keep a longish horizon view on this stock because incrementally one is hearing about the cap being put on pricing of the incremental gas production from Reliance fields. So, once the clarity comes in the next 2-3 months that would provide further inputs to the stock if it is agreed to be priced at the normal price on April 2014 onwards. The satellite fields incremental production will start happening from 2015 and that will give a huge plus-plus with the declining trend that we have seen from Reliance's gas bases," he said.

"I think it is a very stable stock but on declines maybe close to that 780-800 mark if the markets decline and Reliance comes around those levels that becomes a good averaging price. One should hold on to the stock for the next 2-3 years. The stock can reap excellent dividends over that time frame."

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