Buy RIL with a target of Rs 1050-1100: Baliga

Ambareesh Baliga, Independent Analyst is of the view that one can buy Reliance Industries with a target of Rs 1050-1100.

Baliga told CNBC-TV18, “The reason for suggesting to buy Reliance Industries Ltd (RIL) at the current juncture is clearly the results, which were better than what we were expecting. I think they clearly surprised us with the refining margins and petrochemical margins. Going ahead, I clearly see the gas price hike. I think that should happen sooner than later possibly in the next couple of months because I don’t think they can wait till about 2014 to finally announce the gas price hike. Going by the Rangarajan Committee report, I think that should form the basis for the pricing." He further added, "Even if it is closer to about USD 8.5-9, I think that is a major upside from what they are getting currently, which is about USD 4.2. So that would be one of the major trigger for Reliance and the 4G rollout. Based on that, I clearly see this stock possibly going to levels of about Rs 1,050-1,100. So that is one stock you can look at buying.”