Hold Reliance Industries

"Directionally Reliance has clearly stated its intentions about going for inorganic growth. Along with that if you factor in a turnaround in the commodity cycle, somewhere 15-18 months down the line, you have the affect of a lower base coming currently, which will help in percentage terms which will scoop the sentiments of the markets and at the same time in absolute levels.”

He further added, “Reliance might start making 4-5% higher return on equity and the profit growth might exceed 30-35% because that will also be the time when the Krishna-Godavari gas ramp up will happen. Along with that any more positive news on exploration and concrete moves on, inorganic growth should also help the sentiments and valuations are not very demanding at around 14 times 20% discount to the broader market. I think there is reasonably margin of safety for an investor trying to hold it for 1.5-2 years."