Reliance Industries remains one of the preferred largecap bets despite global uncertainties, supported by improving refining margins, growth in its retail business and the expected Jio IPO, according to Mayuresh Joshi, Director Research at Marketsmith India.
On Reliance Industries, Joshi said the investment case remains intact. He expects the refining business to benefit from improving gross refining margins (GRMs), while the retail and telecom businesses continue to offer long-term growth opportunities.
“I think the refining part of the business might actually turn in favour of Reliance,” he said, adding that the expected Jio IPO could act as another trigger for the stock. He also sees sustained growth in Reliance Retail and Jio supporting earnings over the medium term.
Joshi also shared a positive view on Goodluck India after the company’s decision to merge its defence subsidiary into the listed entity. While defence remains a small part of the business today, he said execution of a growing order book and operating synergies could improve both revenue and margins over the next few years.
For the full interview, watch the accompanying video
Mayuresh Joshi prefers Reliance, Karur Vysya Bank; sees RBL staying cautious near term
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