Reliance Industries stock goes ex-bonus, CLSA reiterates 'buy'

 BT Online        Last Updated: September 8, 2017  | 08:52 IST
Reliance Industries stock goes ex-bonus, CLSA reiterates 'buy'

The Reliance Industries stock was trading 0.27 percent lower on Thursday after the stock turned ex-bonus on the bourses.

At 14:44 hours, the stock was trading at 820 level.

The RIL stock closed marginally lower at Rs 819.90 on Thursday.

Meanwhile, international brokerage CLSA has reiterated a buy call on the market heavyweight.

CLSA said if the telecom regulator cuts interconnection usage charge, it could lead to an addition of 13-14 percent to Reliance Industries consolidated earnings per share.

Also read: Reliance Industries shares turn ex-bonus today, trading higher

Start of downstream expansions and gradual reduction in discounts for Jio's smartphones are other short term triggers, CLSA added.
 
The stock has gained continously for the last six sessions ahead of its turning ex-bonus on Thursday.

Ashwani Gujral of ashwanigujral.com has given a 'buy' rating to the stock. Gujral told CNBC-TV 18, "Reliance clearly seems to have completed its correction and that is one of the reasons the market is not falling. So, on all declines towards Rs 1,500-1,550, Reliance is a buy."

On Wednesday, the oil-to-telecom conglomerate said it has acquired assets of Kemrock Industries and Exports for undisclosed sum to enter the composites and carbon fibre manufacturing business.

The company "participated in an on-line e-bidding process held recently by Allahabad Bank being leader of the consortium of 11 Banks to sell / dispose off assets of Kemrock Industries & Exports Ltd of Vadodara (Gujarat) and has been declared as the winner in the said bid," RIL said.

Participation in the auction, it said, was part of RIL's efforts to enter the composites business and establish a leadership position in this large and growing market in India.

Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.

"The assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio," the statement said.

RIL, the largest private sector company that operates the world's biggest oil refinery complex at Jamnagar in Gujarat, is in the process of complying with the necessary formalities for acquisition of assets, it added.

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