>RELIANCE INDUSTRIES: Concerns overdone, attractive BUY

⇒ ¾ Negatives like declining KG D6 gas production, lack of clarity on cash utilization and CAG report findings already priced in. See limited downsides from current levels


⇒ ¾ Any positive outcome emerging from the RIL-BP tie up (in the form of increased production) or a suitable acquisition can boost sentiment and trigger a re-rating


⇒ ¾ Refining business outlook also turning positive owing to the current scenario being favorable for complex refineries like RIL


⇒ ¾ Valuation attractive at 10.4x FY13E and 5.9xEV/EBITDA. Favorable risk reward ratio coupled with stable/improving financials warrant a Buy on RIL. Initiate coverage with TP of Rs.1,119


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