Expect new lows in Reliance Industries: Jai Bala

Expect new lows in Reliance Industries, says Jai Bala of cashthechaos.com.

Bala told CNBC-TV18, "I am expecting new lows on Reliance. I am sure most of the technicians are expecting that. I have been expecting this for quite some weeks. I told you that the day before I was here for the Budget, the stock had clocked, overlapped the initial high it made from the December lows. That tells us that the move from the December lows is actually a corrective price action, not a new uptrend. So if I were to quantify levels to which Reliance can reach, I think it is going to go to a minimum of Rs 640."

The company's trailing 12-month (TTM) EPS was at Rs 61.97 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 11.75. The latest book value of the company is Rs 384.66 per share. At current value, the price-to-book value of the company was 1.89. The dividend yield of the company was 1.1%.