Karvy Stock Broking Limited has maintained ‘buy’ rating on Reliance Industries (RIL) stock with an intraday target of Rs 1550.

According to Karvy, interested traders can purchase the stock between Rs 1520-1525 with a strict stop loss of Rs 1510. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 1555.
 
Shares of the company, on Wednesday (March 25), closed at Rs 1533.40 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 99.41 and 15.52 respectively. The share price has seen a 52-week high of Rs 2706.60 and a low of Rs 930 on BSE.

The stock has good potential to go up. On Wednesday (March 25), it performed well and gained 5.63% at Rs 1,533.40 following reports the company has reached agreement with fertiliser firms on sale of gas from its eastern offshore KG-D6 fields.

RIL and 12 fertilizer companies, which are among the first receivers of gas from the Mukesh Ambani-run firm`s eastern offshore KG-D6 fields have stopped all outstanding matters and the signing of the gas sales and purchase contract has been planned for March 27.

KG-D6 will start fabricating gas in the next few days and opening volumes would go to meet the fuel shortage at urea making plants.

On March 24, RIL has lifted the marketing edge on the natural gas it will supply from its eastern offshore KG-D6 field by 25% to $0.15 per million British thermal unit from $0.12 per mmBtu earlier.

The company on March 20 also said that it is making discussions with Essar Oil to source petroleum products from the Essar Oil’s refinery in Vadinar in Gujarat to resume its retail outlets that have been closed for nearly a year.

RIL will recommence the outlets by the coming week from Gujarat and Maharashtra.

RIL also said that will sell petrol and diesel directly to USA from its twin refineries at Jamnagar in Gujarat.

Reliance Retail, part of RIL, is giving a big push to its non-veg retail chain, Delight, by opening 1,000 new stores by 2011.

The reason behind the company’s step to open new stores is that non-veg products deliver margins upwards of 20%, compared with the 10-15% margins in food and grocery retailing.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Larsen, Voltas and Century.