Analysts on Dalal Street retained their bullish view on Reliance Industries (RIL) after the company's 45th Annual General Meeting (AGM) which focused on areas including 5G investment of Rs 2 lakh crore, new energy capex of Rs 75,000 crore and launch of its FMCG business.
Shares of the company settled 0.84 per cent down at Rs 2596.80 on Monday, while the benchmark BSE Sensex closed 1.46 per cent lower at 57,972.62. The energy-to-telecom behemoth plans to start the 5G rollout in four metros by Diwali with a target of pan-India coverage by December 2023. It also plans to connect 100 million broadband homes which would drive growth for Jio over the next 3-5 years.
New energy business clearly outlines capacity building and timeline to start production across the key value chain with 10 GW solar PV cell and module facility to start production by 2024, green hydrogen by 2025 and battery packs by 2023.
Sharing his views on Reliance Industries post the AGM, Abhijeet Bora, AVP- Research, Sharekhan by BNP Paribas said, "Investment of Rs 75,000 crore in O2C business was a bit surprised with capacity expansion for PTA/PET/Polyester by 2026, capacity expansion of EDC/PVC at UAE and carbon fibre (capacity of 20000 tonnes) plants. A clear succession plan for each business of Jio, retail and new energy is also important in building a leadership team for sustained growth (RIL target to double its value by end of 2027). We maintain our 'Buy' rating on RIL."
He concluded his address by seeking everyone's blessings for the next gen to take over the reins confidently. With Akash heading Jio, Isha heading retail and Anant heading energy, the plans are spelt out. In his speech, he also promised to double the value of the company by 2027.
Kranthi Bathini, Equity Strategist, WealthMills Securities said, "Market was anticipating the value unlocking from RIL's various businesses but there were no such announcements. However, he gave complete emphasis on succession planning and assigning tasks on how children are going to take the businesses going ahead. From a stock-specific point of view, RIL is a long-term stock. One needs to keep RIL as a long-term core portfolio stock. Value unlocking will happen over a period of time. It will give stability to everyone's portfolio. RIL is not a stock for one quarter or so on."
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