Limited downside seen in Reliance Inds, says Amar Ambani

Limited downside is seen in Reliance Industries, says Amar Ambani, Head- Research, IIFL.

Ambani told CNBC-TV18, “A lot of bad news is priced into Reliance Industries. So, we don’t expect a big downside from here, but the pressure will continue because the pressure is not from one or two areas, but rather on multiple accounts.”
He further added, “If you talk about numbers tomorrow then we are expecting a 10-11% kind of growth in revenue, but about Rs 4250 to Rs 4300 crore kind of net profit level, which would mean possibly 15-20% kind of de-growth in terms of profit and this like I said on multiple accounts. Their domestic gas production is going down and so is the oil. The petrochemical margins also are affected. If you look at GRMs they will be at around USD 7 or so and that also is under pressure. They have had some shut downs there. The throughput also has been down and there is a regulatory overhang also, so that affects the stock too. So that’s our take on the results, as far as the stock is concerned yes, not too much downside from here as far as we think, but definitely not going anywhere in a hurry. So at best a market performer.”