RIL slips from record high

Reliance Industries had slipped 0.08% to Rs 1969.85 at 14:20 IST, off session's high of Rs 1999.30 after CPI(M) asked the government to reject what it feels is an artificially inflated price of gas proposed by the company.
The BSE Sensex was up 55.71 points, or 0.36%, to 15520.85 following overnight gains in US stocks after a report on Tuesday, 4 September 2007 showed manufacturing activity in US expanded in August 2007, easing recession worries.
On BSE, 3.43 lakh shares of the scrip were traded. The stock had an average daily volume of 8.14 lakh shares on BSE in past one quarter.
The scrip had touched a high of Rs 1999.30 in early trade which is its all-time high. It touched a low of Rs 1955.65, so far during the day. The stock had hit a 52-week low of Rs 1075.20 on 12 September 2006.
The scrip had outperformed the market in the one month to 4 September 2007, adding 10.62% as against the Sensex's 3.77% gain. It had also outperformed the market in the past three months, gaining 16.84% against the Sensex's 8.48% rise.
India’s most valuable firm and world's third-biggest refiner has an equity capital of Rs 1393.51 crore. Face value per share is Rs 10.
At the current price of Rs 1969.85, the scrip trades at a PE multiple of 21.03, based on Q1 June 2007 annualised EPS of Rs 93.66.
The CPI (M) on Tuesday, 4 September 2007, said RIL had proposed an unfair price of $4.33 per million british thermal units (MBTU) for gas to be produced from Krishna-Godavari basin. The present price formulation made by RIL is in no way consistent with the price of $2.34 quoted by the firm in 2004 for supplying gas from the same KG Basin to NTPC through international competitive bidding, it said.
Meanwhile, the company on Tuesday, 4 September 2007, announced the acquisition of a majority stake and management control of Gulf Africa Petroleum Corporation (GAPCO) for an undisclosed amount.
The Mauritius-based GAPCO, with significant operations in East Africa, was owned by brothers Yogesh Kotak (44%), Dhiran Kotak (44%) and Africa Growth Fund (12%).
The acquisition has been made through RIL's wholly owned subsidiary Reliance Industries Middle East, Dmcee (RIME), a company registered in the United Arab Emirates.
RIL’s net profit rose 28.2% to Rs 3264 crore on a 14.4% increase in sales to Rs 28056 crore in Q1 June 2007 over Q1 June 2006.
RIL's principal activity includes production and marketing operations of the petroleum refinery. The petrochemicals segment includes production and marketing operations of petrochemical products.