“The merger of Reliance Industries will result in the operational and financial synergies. The investors are recommended to HOLD the stock though the upside is capped at present based on FY09 results. The stock is trading at Forward PE of 12.15x for FY 10. Post Merger we recommend BUY in the range of Rs 1000 to Rs 1050 with a target of Rs 1300 based on FY10 performance. In view of current state of the market investors should not rush into buying the stock but accumulate over a period once the market stabilizes,” says Bonanza’s research report.
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