Amit Dalal of Amit Nalin Securities is of the view that one should buy Reliance Industries on any big correction.
Dalal told CNBC-TV18, "In the short term we have a price risk as Udayan has pointed out we have a value at risk where the whole market is concerned and so will Reliance suffer. But if you take the fact that it is India’s largest company now, it is going to be the company, which will show you the highest delta in earnings in FY09 and FY10, with a complete visibility of earnings and if you take almost all other sectors, I could put a question mark on where we are going in terms of their earnings. That’s one stock if you want to be in the equity market and in any big correction then one should buy."
He further added, "I would buy Reliance but I am not sure about Larsen & Toubro because in terms of valuations it’s still not cheap. If Reliance comes down below Rs 2,000, like it did couple of days ago and anything below that if the foreigners are ready to sell it at those levels, then I would definitely buy Reliance. I see big positive year for Reliance in 2009-2010 in terms of earnings growth, in terms of PE ratio or valuation of course the market will only decide for us. But below Rs 2,000 I would definitely be an investor for Reliance."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the stock/sector.
Source: Moneycontrol website
