Analysts expect the results of Reliance Industries for the quarter ended March 31, 2013 to be tepid and in fact see gross refining margins lower.

However, there are analysts who believe that Reliance Industries at the current levels is an excellent buy. On March 25 there were reports that the company had spud its first exploration well in more than five years on the flagging natural gas fields in KG-D6 block as it looks for new reserves to supplement falling output.

Last month Firstcall Research put a buy call on the stock. "At the current market price of Rs.823.95, the stock P/E ratio is at 13.01 x FY13E and 12.64 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.63.35 and Rs.65.20 respectively. Net Sales of the company is expected to grow at a CAGR of 18% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.92 x for FY13E and 6.44 x for FY14E. We recommend ‘BUY' in this particular scrip with a target price of Rs 931 for Medium to Long term investment," the Firstcall Research report said.

Many analysts believe that gas prices, if reviewed would be a big trigger for the stock. Gas price revision would see the company getting a big boost, though the government has been reluctant to hike the same as it could increase power prices.

Chidambaram, presenting the Budget for 2013-14, said: "The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed."

To put an end to the gas worries, the Rangarajan committee has suggested moving to a revenue sharing model where companies will have to bid upfront stating the part of the production they will share with the government from the very first day.

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