Deven Choksey, MD of KR Choksey Shares and Securities told CNBC-TV18, "In Reliance Industries the overhang on the price is probably going away. Currently we believe that for FY14-15, the production is not likely to cross below 20 mmscmd, so from that perspective certainly it would be breather for the company.”
He further added, “The overall impact in a year, if we have to calculate for FY14-15 due to gas price hike could be around Rs 2,550 crore to 2,600 crore at EBITDA level. Therefore, that should be positive. The stock will get rerated and going forward the media focus would be on the capex programme and the increase in the production."
“The stock would probably trade in the range between Rs 840-920 at least for some more time. Till the time we see major news coming out from the rollout of telecommunication, I think we should be seeing this range continuing," Choksey said.
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