InvestorQ : What is the idea of buying Reliance Industries when the stock is correcting so sharply? Can I get stuck in the stock and what are the other stock tips for 04 November?
Arusha Ray made post

What is the idea of buying Reliance Industries when the stock is correcting so sharply? Can I get stuck in the stock and what are the other stock tips for 04 November?

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diksha shah answered.
3 weeks ago
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Since you have raised the question of Reliance, let me address the Reliance question first. Remember at Rs.1850, Reliance Industries is roughly 20% lower than its peak price. That gives you a big margin of safety. What about the negative results of the quarter?

If that is your worry then think again. Remember, the profits and revenues were lower in this quarter only because the oil prices were lower. That is a standard feature of oil companies around the world and it is nothing new. It is not unique to Reliance.

What you need to look at is that in this quarter, digital business is accounting for 40% of the EBITDA. In short, retail is accounting for more of revenues and digital for more of EBITDA. In short, RIL is actually de-risking its oil bets and making it a smaller part of its future. That is the good news for you to focus on. You can look to buy RIL with target of Rs.2500.

In terms of new ideas, you can look to buy HDFC. Now HDFC may not reported very good results in comparative terms but surely it offers value after the fall from peak levels. For the short term, you can buy the stock at Rs.2100 levels for targets of Rs.2250 in one month.

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