Reliance Industries looks attractive: Sandeep Shah

Reliance Industries (RIL) is looking attractive from long term perspective, says Sandeep Shah, CEO, Sampriti Capital.

Shah told CNBC-TV18, "At Rs 700-750 clearly Reliance Industries was undervalued and to that extent a 10% move from those levels doesn’t make it expensive yet. If it can actually mend its fences with the Oil Ministry and given the Comptroller and Auditor General (CAG) whatever data they want and I think the approvals come through faster I think good for Reliance, good for the country and good for everybody."
He further added, "If we can get more gas good for power companies, good for fertilizer companies and good for everyone. So Reliance I think from a long-term perspective remains attractive. Of course you don’t want to chase the stock as it rallies, but I think if you were to take a 2-3 year call and the underlying assumption being that the KG-D6 gas imbroglio or the stalemate there whether it’s because of issues in the well itself or because of regulatory clearances for the other wells, I think the hope is that if some of these clearances start moving and Reliance’s oil and gas Discounted Cash Flow (DCF) value actually starts creeping up again, I think Reliance can give you some upside. But I don’t think it’s going to be a runaway upside, so you don’t really want to chase the stock. You might want to wait for a correction to get back in again."