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Reliance may disappoint if you look at only the current quarter: Sushil Choksey

Reliance may disappoint if you look at only the current quarter: Sushil Choksey
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RIL | Abu Dhabi National Oil Company: What JV with ADNOC will mean for Reliance stock


Sushil Choksey, MD,
Indus Equity Advisors.
Reliance Industries has announced a mega petchem JV with Abu Dhabi National Oil Company (ADNOC). We understand that Reliance Industries is likely to pump in close to $1.5 billion in the JV to start with. How are you looking at this overall bolstering of petchem plans?
This is very positive news from Reliance’s perspective. The company is energising itself from a domestic front to an international location which is very strategic in terms of the power cost, the fuel cost, and the fuel mix and with a right partner at the right location. Investment of $1.5 billion is one part of it but they are setting up a capacity which would provide chlor-alkali, ethylene dichloride and PVC at a cheaper rate on a global standard. That means doors will open for Reliance not only to export to India at a competitive price but also in various parts of the world.

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reliance share price: RIL AGM might be the icing on the cake for shareholders


The key trigger to watch out is
Reliance AGM and see if there are specific announcements related to its oil-to-chemicals business, says Sushil Choksey of Indus Equity Advisors. Edited excerpts from an interview:
What do you make of the big up move in Reliance shares in a matter of two days? What did we miss out over there?
RIL share prices peaked out around September-October and was underperforming. Within 14,300 to the current range, Nifty might have moved 2-3 times but Reliance kept sliding from the peak by almost Rs 350.
Now look at the triggers for the stock. Its petrochemical business is a play on the consumption story in India. O2C business is also a play on the consumer side. Globally, fuel demand is on the rise and refineries in the US are facing disruption.

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reliance share price: What sparked a 6% rally in Reliance shares today?


Oil-to-telecom conglomerate
Reliance Industries contributed to most of the gains in benchmark index Sensex on Friday as it ended the day at Rs 2,094.90, up 5.9% on BSE. Sushil Choksey of Indus Equity Advisors decodes factors behind the rally in RIL stock. Edited excerpts:
Was today's rally in Reliance shares surprising? What were the triggers?
Reliance was underperforming since the last quarter. Nifty has gone up by almost 700-800 points since then. RIL has the highest weightage in Nifty. The prices of petrochemical products might be at a decade high now. The prices of polymer has also gone up. There were some reports by some foreign brokerage houses this morning related to this.

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