RIL stock likely to outperform Nifty 50 space based on AGM announcements, expect analysts1 min read . Updated: 24 Jun 2021, 06:39 PM IST
- AGM's announcements failed to uplift the stock movement as RIL shares closed over 2% lower on Thursday
Shares of Reliance Industries (RIL) fell more than 2% on Thursday despite major announcements made by the Chairman Mukesh Ambani at the 44th Annual General Meeting (AGM). The stock closed at ₹2,153 per share, down 2.3% on the BSE.
RIL made a slew of announcements during the AGM which varied from Aramco deal that is expected to be finalised this year to appointing Saudi Aramco's Chairman Yasir Al-Rumayyan as a director on RIL's board. Ambani also unvieled the 'most affordable smartphone' JioPhone Next.
Even though today’s announcements failed to uplift the stock movement, analysts believe that RIL stock will likely outperform the Nifty50 space. Gaurav Garg, Head of Research, CapitalVia Global Research Ltd said, ''I believe RIL to do well in coming quarters firmly based on its core Oil & Gas business which might helped by increasing price of crude in last few quarters, along with Retail and JIO arms.''
''What excites me is the growth of ARPU which was 138 ₹in April quarter which might boost in the coming quarters, I expect this to increase by 25% in next one year. Based on announcements made and considering next year’s performance of the stock, stock likely to out-perform NIFTY 50 space, as I expect the stock to touch ₹2650 level in next year,’’ he added.
''Jio working on 5G trials, will collaborate with Google Cloud for solutions, seen as first step towards made-in-India tech. JIO Fiber has become the largest and fastest-growing fixed broadband operator in India. This might be dark horse top line contributor for Jio,’’ Garg added.
Ambani announced plans to disrupt the new energy business as the company intends to invest around ₹75,000 crore in a new green and clean energy business over the next three years.
''The announcement of ₹75000 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,’’ VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
RIL's plan to substantially scale up clean energy & digital technology has the potential to transform RIL into a leading global company in sync with a sustainable planet, he added.
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