• Business NewsBeta
  • Shows
    • Daily Show2+2=5Take it EasyRed AlertFormula GuruMoney GyanMoney CentralMoney timeJhatpat
    • Weekly ShowMoney ComicsEconomicomRealty CheckSmile and payMoney TalesSpend WiseCompanynama
  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Crypto
  • Tax
    • हिन्दी
    • తెలుగు
    • मराठी
    • বাংলা
    • ગુજરાતી
    • ಕನ್ನಡ
  • Close
Subscribe Follow

Share

  • Facebook
  • Twitter
  • Whatsapp
  • LinkedIn
  • Telegram
  • Daily Show
    • 2+2=5
    • Take it Easy
    • Red Alert
    • Formula Guru
    • Money Gyan
    • Money Central
    • Money time
    • Jhatpat
  • Weekly Show
    • Money Comics
    • Economicom
    • Realty Check
    • Smile and pay
    • Money Tales
    • Spend Wise
    • Companynama
  • Insurance
  • Savings
  • Loan
  • Crypto
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home » News » Market News » Reliance AGM 2021 analysis: Should you buy RIL shares post-AGM? Here’s what analysts have to say

Reliance AGM 2021 analysis: Should you buy RIL shares post-AGM? Here’s what analysts have to say

RIL also announced an ultra affordable smartphone jointly developed by RIL and Google which is to be launched in September

  • Rahul Oberoi
  • Updated On - June 24, 2021 / 11:13 PM IST
Reliance AGM 2021 analysis: Should you buy RIL shares post-AGM? Here's what analysts have to say
RIL stumbled two places to 57th rank despite its valuation going by 11% during the period. With an 8% dip in valuation, Kotak Mahindra Bank fell to the 380th rank, while rival ICICI Bank went up to the 268th rank with a 36% surge in valuation, the Hurun List showed.

Investors on Dalal Street preferred to book profits in Reliance Industries on the day of its 44th Annual General Meeting. As a result, shares of the oil-to-telecom behemoth settled 2.35% down at Rs 2153.35, while the benchmark BSE Sensex settled 392.92 points, or 0.75%, higher at 52,699. Earlier, the scrip had gained more than 2% this month till June 23.

Why did RIL slip?

Market analysts believe that capital expenditure plans over the next three years put pressure on the stock. Sanjiv Bhasin, Director, IIFL Securities said, “Capex plans of Rs 75,000 crore announced by the company are very ambitious and it has left a little bit of sour taste in the mouth of investors. However, these projects are the need of the hour and it will take a little bit time to digest.”

His views came after Mukesh Ambani, Chairman, Reliance Industries, said the company will invest over Rs 60,000 crore in the next three years on four Giga factories. Ambani also announced to invest an additional Rs 15,000 crore in the value chain, partnerships and future technologies, including upstream and downstream industries.

Other major announcements

In the 44th AGM, Ambani announced to launch of a truly transformational clean energy ecosystem which will “transform India from a major importer of fossil fuels to an exporter of clean energy.” Commenting on the announcement, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “Rs 75,000 cr investment in the next 3 years in 4 Giga factories will mark a seismic shift in India’s clean energy pursuit. The affirmation that RIL will make clean energy a truly global business is good news not only for the planet but for shareholders too.”

The company also announced an ultra-affordable smartphone jointly developed by RIL and Google which is to be launched in September.

“RIL’s plan to substantially scale up clean energy and digital technology has the potential to transform RIL into a leading global company in sync with a sustainable planet,” said Vijayakumar.

Should you invest?

While advising investors and shareholders, Bhasin said: “Investors can buy the stock on dips as the progress of Jio, retail and the new capex got long term implications. For the first time, any Indian company has got investors like Saudi Aramco on board. This sounds very optimistic. Reliance is going to be the first Indian international firm.”

Gaurav Dua, senior VP and head – capital market strategy, Sharekhan by BNP Paribas said, “Biggest takeaway from RIL AGM include reassurance on Aramco coming on-board with a strategic stake in O2C business and a beginning of a new investment cycle with an allocation of Rs 75000 crore in the green energy space. The growth plans in Jio and retail businesses seem to be on track. Though the announcements are encouraging they seem to have fallen short of heighten expectations. There is no clarity on the valuation for the Aramco deal. Nor the speech had timelines for the listing of Jio and retail businesses. Overall, we retain our Buy rating on RIL and it is among our preferred pick among large-cap companies.”

Download Money9 App for the latest updates on Personal Finance.

follow us

  • Facebook
  • Twitter
  • LinkedIn
  • Telegram
  • Youtube
  • Instagram

also read

  • IT stocks poised to move higher from current levels: Kranthi Bathini

    IT stocks poised to move higher from current levels: Kranthi Bathini

  • All you need to know about Alternative Investment Funds

    All you need to know about Alternative Investment Funds

Read more news on

  • Mukesh Ambani
  • Reliance Industries
  • Reliance Jio
  • Reliance Retail
  • RIL

Latest Video

SEE MORE
Why wheat flour prices increased after wheat export ban?

Why wheat flour prices increased after wheat export ban?

Updated: June 27, 2022
Is Petrol-Diesel price increase again on the cards?

Is Petrol-Diesel price increase again on the cards?

Updated: June 23, 2022
Why are edible oil prices falling?

Why are edible oil prices falling?

Updated: June 23, 2022
Why popular AMC stocks are down?

Why popular AMC stocks are down?

Updated: June 22, 2022
Why are car, two wheeler prices not falling?

Why are car, two wheeler prices not falling?

Updated: June 21, 2022
IRDA bats for reforms in the insurance sector

IRDA bats for reforms in the insurance sector

Updated: June 20, 2022
Should you invest in Gold when stock market is falling?

Should you invest in Gold when stock market is falling?

Updated: June 19, 2022
Why is India's rice export to China on the rise?

Why is India’s rice export to China on the rise?

Updated: June 17, 2022
Open in App

Related

  • Sensex rises 157 points as Reliance, ITC and L&T shine

    Sensex rises 157 points as Reliance, ITC and L&T shine

  • Vaishnaw seeks suggestions for reforms in telecom sector

    Vaishnaw seeks suggestions for reforms in telecom sector

  • Jio hikes tariff for unlimited plans by 20%; Check details here

    Jio hikes tariff for unlimited plans by 20%; Check details here

  • 20 firms accounted for 65% corporate profit in first half of FY22: Study

    20 firms accounted for 65% corporate profit in first half of FY22: Study

  • RIL, Pidilite Industries, Capri Global in focus

    RIL, Pidilite Industries, Capri Global in focus

  • RIL, Wipro, IRCTC, Havells India to be watched

    RIL, Wipro, IRCTC, Havells India to be watched

Videos

  • Complaint process on loan recovery agent harassment
    Loan

    Complaint process on loan recovery agent harassment

  • Will buy stocks in India if Nifty drops to 14,000: Christopher Wood
    Exclusive

    PNB, UBI turn ex-dividend

  • Why are edible oil prices falling?
    Exclusive

    Why are edible oil prices falling?

  • Why popular AMC stocks are down?
    Stocks

    Why popular AMC stocks are down?

  • JP Morgan gives target price of Rs 840 to LIC
    Exclusive

    JP Morgan gives target price of Rs 840 to LIC

  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Know this india
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Daily Shows

  • 2+2=5
  • Take it Easy
  • Red Alert
  • Formula Guru
  • Money Gyan
  • Money Central
  • Jhatpat
  • Money time
  • Weekly Shows

  • Money Comics
  • Economicom
  • Realty Check
  • Smile and pay
  • Money Tales
  • Companynama
  • Spend Wise
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • Andorid
  • ios
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2022 Money9. All rights reserved.