Reliance AGM: Why experts are bullish on RIL share price — explained

Reliance Industries share price is expected to zoom ahead of its Annual General Meeting (AGM) scheduled on 24th June 2021 i.e. today. According to stock market experts, Reliance Industries management has made a habit of keeping big announcements for the AGM. In today's Reliance AGM, market is expecting some big announcement in regard to Reliance Saudi Aramco deal and may be Saudi Aramco Chairman joining Reliance board. Experts said that if any such announcement comes, then Reliance Industries shares can give sharp upside moves and recommended investors to buy Reliance shares ahead of the AGM.

Speaking on the Reliance share price target Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Reliance management has a habit of keeping big announcement for its AGM. So, market is expecting some big announcement coming out after this AGM. When there is expectation, there would be speculation too. This time, the speculation is around appointment of Saudi Aramco Chairman in the Reliance board — a booster dose for the Reliance Saudi Aramco joint venture where Saudi Aramco will buy 15 to 25 per cent stake in Reliance' oil venture."

Highlighting the impact of Saudi Aramco person's appointment Ravi Singhal, Vice Chairman at GCL Securities said, "Once the appointment is announced, an investment to the tune of ₹1.25 lakh crore to ₹1.50 lakh crore would come to Reliance Industries Limited or RIL, which is currently a debt-free company. In surplus liquidity scenario, the company would either go for investment or give dividend to its shareholders. As Reliance's investment cycle is over, it would most probably give dividend to its shareholders."

On impact of this announcement on Reliance Industries share price Ravi Singhal of GCL Securities said, "If the announcement is made, one can expect RIL share price to go up to ₹3000 mark in next 6-9 month time horizon. However, to maximise one's returns, my suggestion is to buy Reliance shares in ₹2200 to ₹2240 range keeping stop loss at ₹1950." On Wednesday, Reliance Industries share price closed at ₹2208.15 per stock mark at NSE.

Avinash Gorakshkar of Profitmart securities said that Saudi Aramco person'a appointment will impact ₹150 to ₹200 of Reliance Industries share price target in all time-frame.