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What should investors do with RIL post 43rd AGM: buy, sell or hold?

In the previous session, share price has ended 3.7 percent lower after hitting a fresh record high of Rs 1,948.75 during the day.

July 16, 2020 / 10:34 PM IST

Reliance Industries (RIL) share price declined in early trade on July 16, a day after the company's 43rd Annual General Meeting.

In the previous session, share price has ended 3.7 percent lower after hitting a fresh record high of Rs 1,948.75 during the day.

The company chairman Mukesh Ambani in AGM said that it will approach NCLT with a proposal to spin-off their O2C business into a separate subsidiary.

RIL has been approached by strategic investors in petrochemicals biz. “The deal with Saudi Aramco has not progressed as per original timelines, but remains committed to deal with Saudi Aramco,” he said.

Google will invest Rs 33,737 crore for a 7.7 percent stake in Jio Platforms, becoming the latest A-list investor in the digital unit of the company.

Ambani said that Jio is ready with a world-class 5G solution. Field deployment can happen next year.

This 5G product will be available for trials as soon as the spectrum is available. Jio Platforms will be positioned for 5G solution to other telecom operators, he added.

The oil-telecom-to-retail major recently crossed Rs 12 lakh crore in market capitalisation becoming the first listed Indian entity to achieve the feat.

Also Read - RIL AGM 2020: Reliance Industries likely to be a $400 billion company in three years, analysts say

BofA Sec | Rating: Buy | Target: Rs 1,940

Jio is going to have access to 500 million mobile users, 20 million households & 10 millio SMEs over the time and it also has India’s biggest physical retail stores. The downside risk is negative cash flow for many years on diversification in telecom, reported CNBC-TV18.

CLSA | Rating: Buy | Target: Rs 1,754

Google invests USD 4.5 billion in Jio, while stake sale in retail is in the coming quarters. The online extension of retail business is progressing well.

The stake sale in retail to strategic or financial investors may happen over the coming quarters. However, approvals for spin-off of petchem & refining business may be in place by early-2021.

It should pave the way for the closure of the deal with Aramco, reported CNBC-TV18.

Morgan Stanley

The stake sale of 7.7% in Jio Platforms to Google implies USD 61 billion enterprise value. Also it plans to include global partners & investors in Reliance Retail. However, there was no mention on Telecom InvIT monetization, reported CNBC-TV18.

Kotak Institutional Equities | Rating: Buy | Target: Raises to Rs 2,150 from Rs 1,750

The company’s foray in digital commerce business is going to be next big driver. Company being at forefront of consumer-facing digital ecosystem opportunity in India. Its retail business can double revenue to over USD 26 billion from core segments in 4 years, reported CNBC-TV18.

At 09:25 hrs Reliance Industries was quoting at Rs 1,842.95, down Rs 2.65, or 0.14 percent on the BSE.

Follow all of our coverage on RIL’s 43rd annual general meeting here.

(Disclosure: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments which published

Moneycontrol News
first published: Jul 16, 2020 09:40 am