RIL, RPL good buy at lower level: D Mehta

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RIL, RPL good buy at lower level: D Mehta

Dipan Mehta, Member, BSE/NSE is of the view that RIL and RPL are attractive buy slightly lower from these levels. Fundamentals seems to be suggesting weakness in these stocks given that there is some pressure on refining margins and the results, which came for Reliance for the last quarter were definitely below market expectations.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Reliance a safe pick in Oil: Dutta RIL to invest $23mn to work on Cauvery assets, stk up ALSO READ See previous views by Dipan Mehta See what other Experts & Brokerages are saying about Reliance See messages about Reliance Reliance BSE | NSE 28/05/12 Are Mutual Funds betting on Reliance? Other Stocks in this news Reliance Petroleum |

Dipan Mehta , Member, BSE/NSE is of the view that Reliance Industries , RIL and Reliance Petroleum , RPL are attractive buy slightly lower from these levels.

Mehta told CNBC-TV18, "The entire Reliance packs; both sides of the groups have performed exceedingly over the past two-three years; they have been market leaders and now that one has seen such a sharp correction, a lot of investors maybe overweight in these stocks and maybe unwinding at this point of time. Fundamentals also seems to be suggesting weakness at least in Reliance Industries and RPL given that there is some pressure on refining margins and the results, which came for Reliance Industries for the last quarter were definitely below market expectations. So there are few fundamental issues also, which market is grappling with."

He further added, "At the same time they suffer from being overweight in a lot of portfolios; at this point in time when rebalancing and reallocation has taken place where we are seeing some investors trying to go underweight in these stocks. But nonetheless these are good companies and at some point of time maybe slightly lower from these levels they could make an attractive buy. There are some developments also which are expected, which could be positive in Reliance Industries case. I think any further discoveries on their oil exploration and gas exploration division would be positive and especially in RPL investors are looking forward to formal commissioning of the new refinery."

Disclosure: It is safe to assume that analyst and his clients may be interested in the above stock/sector.