A number of noteworthy announcements that might unlock value in the company's shares are expected at Reliance Industries Ltd.'s (RIL) 47th Annual General Meeting (AGM), the largest conglomerate in the nation.
With the latest pricing rise and the completion of the 5G rollout, Jio's emphasis on monetization has been driving the conglomerate's development engine.
Jio's growing 5G user base, rising data use, and rate increases are the main drivers of its development. While Bharti Airtel, a rival in the telecom industry, is trading at a P/E multiple of over 70, RIL is now trading at a multiple of about thirty. If a public issue takes place, this discrepancy suggests a substantial chance for value creation, according to SAMCO Securities Research Analyst Amar Nandu.
Investors now anticipate that the retail and energy sectors will list shortly as well. Additionally, Reliance Retail Ventures Limited is expanding rapidly, propelled by shop growth and a 30% increase in revenue (30% of RIL's total revenue in FY2024). Reliance Retail's IPO announcement may raise the company's worth even further, Nandu continued.
Investors will be keeping an eye out for timeframes, objectives, new alliances, and other announcements on RIL's varied company, which spans oil and petrochemicals, telecom, retail, new energy, and finance, at its 47th annual general meeting.
Stocks Suggestions
Nandu thinks there could be more information on Jio Platforms Ltd.'s IPO as the chairman had said at the 2019 AGM that Jio will go public in five years. Jio's significant scale is demonstrated by the fact that its revenue, EBITDA, and PAT for FY2024 account for 12%, 31%, and 27% of the company's consolidated statistics, respectively.
The total value of RIL's business units is more than the firm's market valuation, he continued, indicating that the company is now undergoing a conglomerate discount. The corporation may soon announce separate listings for its business groups in order to unlock this value, which might increase shareholder wealth.
A thorough five-year succession plan for Mukesh Ambani's three children was unveiled by the AGM last year, marking a significant turning point for India's most valuable firm. Significant growth-related announcements have been made by RIL in the past during its AGMs, and this year is probably going to be no different.
Amar Nandu thinks it could be beneficial to think about purchasing the company's shares tomorrow during early market hours given the possibility of encouraging, growth-focused statements at the AGM.
Performance of RIL's share price
The stock of Reliance Industries has grown by 15.7% this calendar year, compared to a gain of 22.65% during the previous year. The past six months have seen a 3% growth in the shares.
RIL shares history on AGM day
RIL shares have finished lower on AGM day six times out of the past ten years.
The Covid-19 pandemic in 2020 saw the worst AGM day for RIL investors in the previous ten years, with the stock falling 3.71% to Rs 1,845.60. Profit-taking following news such as the Rs 33,737 crore Google agreement and plans for 5G products made in India, was the main cause of the fall.
2019 saw the greatest AGM day, with the stock rising 9.72% to Rs 1,262.98. The news of Saudi Aramco's 20% investment in RIL's oil-to-chemical division (later canceled) and Reliance's intention to become a debt-free firm was well received by investors.
How to trade before today's RIL AGM?
Senior Vice President and Head of Derivatives Research at Kotak Securities Sahaj Agrawal
In the medium run, Reliance Trades has a bullish tilt. According to Sahaj Agrawal, the stock's trend support is at 2690 levels, and purchasing on dips is advised.
Resistance is positioned at levels 3200–3300 on the upper side.
"A collar approach protects against downside while enabling upside participation when the underlying's trend is still positive. Protection below the 3000 mark with participation up to 3200 levels is appropriate in the current configuration," Agrawal remarked.
Ajit Mishra, SVP of Research, Religare Broking
Reliance has been trading in a range after retesting the support zone at 2850, with prospects of further consolidation. "Traders should consider options strategies with a bullish bias ahead of its AGM, such as a bull call spread," Ajit Mishra, its CEO, advises.
Buy the 3000 call option.
Sell the 3100 call option.
The strike prices have been determined based on the immediate support at 2950.
"We may see new momentum in the stock once it decisively breaks above the 3050 level," Mishra told analysts.
