Reliance Industries AGM: Key things to watch; RIL share price targets & more
RIL shares: Investments in the 'New Energy' segment are starting to play out for RIL gradually, with others segment having grown in revenue by 10 times over FY18-23.
- Aug 28, 2023,
- Updated Aug 28, 2023 10:34 AM IST
Shares of Reliance Industries Ltd (RIL) are in focus on Monday morning ahead of the oil-to-major's 46th annual general meeting. Investor would focus on the timeline for potential listings of retail and telecom businesses, updates on digital and oil-to-chemical (O2C) businesses, progress of various Clean Energy projects and future 5G plans. Any update on the recently demerged business Jio Financial Services (JFS) would be welcomed. Here are key things to watch later today:
New Energy biz plans
Analysts noted that multiple investments in the 'New Energy' segment are starting to play out for RIL gradually, with others segment (housing the new energy and other smaller segments) having grown in revenue by 10 times over FY18-23, even as profitability from this segment remains some time away. ICICI Securities said the AGM should provide some more meaningful update on the pace and direction of investments in this segment over the next few years.
Retail, RJio IPO listings
Reliance Industries recently announced Qatar Investment Authority (QIA)'s Rs 8,278 investment in the retail arm Reliance Retail Ventures (RRVL) through a wholly owned subsidiary. This investment valued RRVL at a pre-money equity value of Rs 8.278 lakh crore against a previous fund-raise round by RRVL in 2020 that was done at a pre-money equity value of Rs 4.21 lakh crore. A media report suggested that RIL may look to sell an additional 8-10 per cent stake in the retail arm. The process, which is seen taking 12-15 months could be be critical for its IPO, the media report suggested. Investors would like to hear about Reliance Retail's listing plans and also for the telecom venture Reliance Jio.
To recall, in his AGM speech last year Mukesh Ambani had said that he would give an update on the IPOs of Reliance Retail and Reliance Jio this year. “I will take up your inputs with our board of directors on the question on IPO for Jio and Retail. The principles on timing and valuation of IPOs remain unchanged. I have outlined the plans for both businesses. Jio is embarking on an aggressive launch of our 5G service and retail is on a path of exponential growth. I will update you on the IPO in my speech next year,” he had stated.
Nomura India said RIL’s AGM is likely to be the next trigger for the RIL stock price, as it may provide a roadmap for unlocking value in the retail segment and further updates on new energy business and JFS. This brokerage has a has 'Buy' on the stock with a target of Rs 2,925.
Strategic sale in O2C segment
JM Financial expects investors to keenly follow updates on potential timeline for listing of retail and digital businesses and any potential strategic stake sale in O2C business. It said investors would eye progress of various projects underway in Clean Energy business with timelines around project commissioning and potential earning potential from such projects. It also sees launch of affordable 5G smartphones along with attractive 5G tariff plans and further updates around succession plans.
5G devices, future plans
Reliance Jio is likely to launch Jio 5G smartphones in India, recent media reports suggested. After the demerger of Jio Financial Services from RIL, the market is expecting some concrete announcements in regard to Retail IPO and Reliance Jio IPO, said Arihant Capital adding that the launch of 5G devices at a reasonable price and updates on succession from the company is also expected.
Besides, Reliance Jio’s 5G plans will also be closely followed. It is likely to announce new Jio 5G plans for different cities across the country. It has been using the existing 4G plans to provide 5G services and is expected to announce its complete rollout of 5G services at the AGM.
RIL has an average share price target of Rs 2,799, as per Trendlyne, suggesting a 13 per cent upside potential.
Also read: Vedanta shares in news as Anil Agarwal firm wins arbitration against govt in $1.1 billion case
Also read: Brightcom Group shares news on CMD, CFO resignations; stock in focus after ED raids
Shares of Reliance Industries Ltd (RIL) are in focus on Monday morning ahead of the oil-to-major's 46th annual general meeting. Investor would focus on the timeline for potential listings of retail and telecom businesses, updates on digital and oil-to-chemical (O2C) businesses, progress of various Clean Energy projects and future 5G plans. Any update on the recently demerged business Jio Financial Services (JFS) would be welcomed. Here are key things to watch later today:
New Energy biz plans
Analysts noted that multiple investments in the 'New Energy' segment are starting to play out for RIL gradually, with others segment (housing the new energy and other smaller segments) having grown in revenue by 10 times over FY18-23, even as profitability from this segment remains some time away. ICICI Securities said the AGM should provide some more meaningful update on the pace and direction of investments in this segment over the next few years.
Retail, RJio IPO listings
Reliance Industries recently announced Qatar Investment Authority (QIA)'s Rs 8,278 investment in the retail arm Reliance Retail Ventures (RRVL) through a wholly owned subsidiary. This investment valued RRVL at a pre-money equity value of Rs 8.278 lakh crore against a previous fund-raise round by RRVL in 2020 that was done at a pre-money equity value of Rs 4.21 lakh crore. A media report suggested that RIL may look to sell an additional 8-10 per cent stake in the retail arm. The process, which is seen taking 12-15 months could be be critical for its IPO, the media report suggested. Investors would like to hear about Reliance Retail's listing plans and also for the telecom venture Reliance Jio.
To recall, in his AGM speech last year Mukesh Ambani had said that he would give an update on the IPOs of Reliance Retail and Reliance Jio this year. “I will take up your inputs with our board of directors on the question on IPO for Jio and Retail. The principles on timing and valuation of IPOs remain unchanged. I have outlined the plans for both businesses. Jio is embarking on an aggressive launch of our 5G service and retail is on a path of exponential growth. I will update you on the IPO in my speech next year,” he had stated.
Nomura India said RIL’s AGM is likely to be the next trigger for the RIL stock price, as it may provide a roadmap for unlocking value in the retail segment and further updates on new energy business and JFS. This brokerage has a has 'Buy' on the stock with a target of Rs 2,925.
Strategic sale in O2C segment
JM Financial expects investors to keenly follow updates on potential timeline for listing of retail and digital businesses and any potential strategic stake sale in O2C business. It said investors would eye progress of various projects underway in Clean Energy business with timelines around project commissioning and potential earning potential from such projects. It also sees launch of affordable 5G smartphones along with attractive 5G tariff plans and further updates around succession plans.
5G devices, future plans
Reliance Jio is likely to launch Jio 5G smartphones in India, recent media reports suggested. After the demerger of Jio Financial Services from RIL, the market is expecting some concrete announcements in regard to Retail IPO and Reliance Jio IPO, said Arihant Capital adding that the launch of 5G devices at a reasonable price and updates on succession from the company is also expected.
Besides, Reliance Jio’s 5G plans will also be closely followed. It is likely to announce new Jio 5G plans for different cities across the country. It has been using the existing 4G plans to provide 5G services and is expected to announce its complete rollout of 5G services at the AGM.
RIL has an average share price target of Rs 2,799, as per Trendlyne, suggesting a 13 per cent upside potential.
Also read: Vedanta shares in news as Anil Agarwal firm wins arbitration against govt in $1.1 billion case
Also read: Brightcom Group shares news on CMD, CFO resignations; stock in focus after ED raids