 First and foremost is the pedigree of the company. It is from the Reliance stable run by the best management in India if not the World. secondly it is going to start its operations ahead of schedule( what do you expect from a good management)
Lastly if the stock markets were not in turmoil at the moment this stock would have been trading at much more premium because of the above two reasons . I see this downturn as a golden opportunity to own this blue chip stock at reasonable prices.
About the Company:
The Company formed to set up a greenfield petroleum refinery and polypropylene plant to be located in a Special Economic Zone in Jamnagar in the state of Gujarat in western India.
The reason to invest is based on expectations that the company’s upcoming refinery would deliver robust refining margins (difference in value between the products produced by a refinery and the value of the crude oil used to produce them). High margins are expected to accrue from strong demand for petroleum products out pacing additions in refining capacities.
Reliance Petroleum Ltd has announced that the Company has successfully completed the second year of implementation of its complex refinery. The Company has achieved 82% overall progress in just 24 months since commencement of the Project. Based on the progress so far, the Company is on course to complete the project ahead of its initial schedule of December 2008
Reliance Petroleum Ltd (RPL) might commission its 29-million metric tonne per annum (mmtpa) capacity greenfield refining project ahead of the December 2008 schedule. RPL, a subsidiary of Mukesh Ambani-promoted Reliance Industries Ltd, is implementing this project at an investment of $6.13 billion. The new refinery is coming up next to the company’s existing refinery located in a special economic zone in Jamnagar of Gujarat, where the capacity is being expanded from 33 mmtpa to 60 mmtpa.
After commissioning of the greenfield and expansion capacity, RPL will have a total of 89 mmtpa of refining capacity in the complex, the world’s largest, according to RPL. The company said it expected to complete the project before the December 2008 schedule.
Reliance Petroleum is building a 580,000 barrel a day refinery adjacent to a 660,000 barrel a day plant owned by its parent. Once complete, Reliance will own the world’s biggest refinery.
Reliance Petrochemical Q2 profit seen at Rs 3345.3 cr: CLSA
CLSA has come out with a report on the earnings estimate of Petrochemicals goods companies for the second quarter of current fiscal year (Q2 FY08). According to the report, Reliance Petro in Q2 FY08 is expected to post net profit of Rs 3345.3 crore
During the same quarter, its net sales are seen up at Rs 32052.1 crore
Latest News and Views on RPL:
Reliance Petroleum, or RPL, plans to start trial runs at its refinery by September according to reports. The company has begun filling oil tanks for refinery trial.
Technical Analyst, Vijay Bhambwani is of the view that Reliance Petroleum, RPL would surprise on the positive side.
He further added, "RPL is showing signs of creating a short-term base at the Rs 155-158 levels and should it already trade above Rs 164-165 levels, I think, it would also surprise one on the positive side." According to him this is a stock they are keeping their eyes and ears open for."
Disclosure: It is safe to assume that analyst & his clients may have an investment interest in the stocks/sectors discussed.
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