A day after suffering a loss of 1.50 per cent, shares of Reliance Industries (RIL) traded volatile in the morning trade on BSE on Tuesday, August 22 as investors fix their eyes on the company’s 46th Annual General Meeting (AGM) on Monday, August 28 at 2:00 pm.
The stock opened flat at ₹2,518.25 and dipped nearly by a per cent before reversing losses and rising 0.8 per cent in early trade. Around 10:40 am, the stock was up 0.33 per cent at ₹2,526.60 on BSE.
After the company spun off its financial business and listed Jio Financial Services on bourses, investors are expecting some announcements on the company’s retail and telecom business in the AGM. Jio Financial Services Limited (JFSL), formerly known as Reliance Strategic Investments Limited, the demerged financial arm of Reliance Industries, made its stock market debut on August 21.
Read more: Reliance Industries AGM to take place on 28 August
Experts are positive about the stock even though it has underperformed the equity benchmark Sensex in the last one year. RIL shares are up about 6 per cent in the last one year while the Sensex has gained 11 per cent in the same period.
Brokerage firm JM Financial, which has a buy call on the stock with a target price of ₹2,900, believes the company’s net debt concerns are overdone. It said RIL has industry-leading capabilities across businesses to drive a robust 14-15 per cent EPS (earnings per share) CAGR over the next three-five years.
Key expectations from the August 28 AGM include the timeline for the potential listing of retail, digital and O2C businesses, and an update on the progress of various clean energy projects.
“Key expectations from RIL’s AGM on 28th August are around any update on (a) potential timeline for listing of retail and digital businesses; any potential strategic stake sale in O2C business, (b) update on progress of various projects underway in clean energy business with timelines around project commissioning and potential earning potential from this projects, (c) launch of affordable 5G smartphone along with attractive 5G tariff plans, and (d) any further update around succession plans,” said JM Financial.
Meanwhile, technical analysts are positive about the stock for the short term.
Gaurav Bissa, VP, InCred Equities pointed out that the stock bounced from its strong demand zone of ₹2,000 and it was seen inching higher at an increased pace.
“The stock has been one of the main reasons behind Nifty stability and it has been relatively stable during the corrections seen in the benchmark indices. It is trading near a 15-month breakout which will be confirmed on a weekly close above ₹2,600 level. Once confirmed, the breakout is likely to push the price towards ₹3,000-3,200 levels,” said Bissa.
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Updated: 22 Aug 2023, 11:11 AM IST