Vasudeo Joshi of Man Financial says that numbers posted by Reliance was slightly below expectations. According to their full-year estimates, EPS is expected at Rs 70 for Reliance.
Joshi believes that interest will remain in Reliance. He further says that Reliance will remain one of their key buys in the Indian market.
Excerpts from CNBC-TV18's exclusive interview with Vasudeo Joshi:
What did you make of Reliance Industries numbers?
They were slightly below our expectations because we were looking at a PBT of about Rs 3,344 crore or to be precise, Rs 334 billion. I think they are slightly lower on account of two counts, mainly the lower utilisation or the through put and to a certain extent, the lower other income. At the same time, the tax rate has also moved up a bit.
I think overall if you look for our full year estimates, which is about Rs 70 EPS for Reliance, we are 4% above the market estimate and we are going to maintain it. We have a buy on the stock.
In the near term where do you see the stock stabilising? How does Reliance look at Rs 70 EPS, which would work out 13-14 times as compared with some of its regional peers?
In terms of valuations, we are talking about Rs 70 EPS. I think today most of the regional and global investors look at Reliance from the perspective of new initiatives in retail, in SEZ etc. So from that perspective, I think the interest is going to remain. So Reliance remains one of our key buys in the Indian market, going forward.
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