It is observed that in the past three months, RIL was down by 2.4% as compared to the 4.5% rally in the S&P BSE Sensex. On BSE, Shares of Reliance Industries (RIL) traded flat at Rs 2,600 in the intra-day deals on Tuesday, in the firm market after it’s 45th Annual General Meeting (AGM) held on Monday, August 29. The stock opened at Rs 2,621.70, hitting a low of Rs 2,578.50. In comparison, the S&P BSE Sensex was up 0.80% at 58,438 points.

On Monday, RIL ended approximately 1% lower at Rs 2,596.80, against a 1.5% decline in the benchmark index. In the past week, the stock has underperformed the market by falling 1.8% against a 1% fall in the Sensex. Moreover, the controlled company of Mukesh Ambani’s stock has lost 2.4% as compared to the 4.5% rally in the benchmark index in the past three months.

“We continue to like RIL’s business and balance sheet. We believe all three core businesses – O2C, retail and digital services – have become self-sustaining and cash-generating, with retail and digital growing strongly. We continue to value RIL on a sum-of-the-parts basis, and our target price of Rs 2,620 is unchanged,” wrote Puneet Gulati, Saurabh Jain and Evan Li of HSBC in a recent note.

At its 45th AGM, the multinational made a few announcements. The launch of Jio 5G services in India in the next two months, the launch of Jio Air Fiber, i.e. “fibre-like data” speeds without any wires, the launch of JioMart on WhatsApp in partnership with Meta, RIL Retail’s plan to launch fast moving consumer goods (FMCG) business this year. The company will launch its FMGC business aiming to develop and deliver high-quality, affordable products solving every Indian’s daily needs, Retail Ventures director Isha Ambani said at RIL’s AGM.

ICICI Securities believe RIL is on a positive track to diversify away from its conventional oil & gas business by creating a manufacturing ecosystem supported by strong technology partnerships and acquisitions. The type attribute of its new venture is the scale, aspiring to capture the entire green energy chain united with a strong technological backbone. This would ensure value creation for all stakeholders, the brokerage firm noted.

According to Motilal Oswal Financial Services, the AGM was gratified by the company’s ambitious plans across the business verticals, like the succeeding 5G launch, venture into the FMCG space, and new energy investments.
ICICI Securities firm expects RIL’s consolidated revenue/EBITDA to clock 13% -15% compounded growth (CAGR) over FY22-24, not subject to any incremental growth from 5G Capex, new energy, and other segments. “Retail, Telecom, and new energy can be the next growth engines in the next two-to-three years. However, the same can hollow its prevailing single-digit return ratios in the near term,” said a post-AGM note.