What Should Investors Do With Reliance Industries Shares After 46th AGM?

The 46th annual general meeting (AGM) of Reliance Industries (RIL) took place on Monday. RIL shares commenced the trading session on Monday at Rs 2474 per share on the BSE and wrapped up with a negative gap of 1.11% at Rs 2442.55 in the case of its highly awaited 46th Annual General Meeting 2023. While on the NSE, the stock started trading at Rs 2,472 and ended 1.27% lower at Rs 2,436.95.

Key Highlights From 46th AGM of Reliance Industries

Here are the key highlights of the 46th AGM of Reliance Industries according to different industry experts.

Aamar Deo Singh, Head Advisory, Angel One Ltd

Major announcements from Reliance were made during its 46th AGM, with some of the highlights including: (a) Reliance Retail's value nearly doubling in less than three years; (b) Jio 5G on track to cover the entire country by December 2023; (c) Jio AirFiber, which will be launched on September 19 and has the potential to accelerate its expansion across India by 10x; (d) JFS becoming one of the highest capitalised financial services companies in the world; and (e) concentrating on completing the DA Green Energy Giga Manufacturing Complex at Jamnagar quickly. In the upcoming ten years, Reliance sees enormous potential for both itself and the nation and also sees itself as a leader. Reliance should surely be included in the portfolios of investors with a long-term outlook, and using the Stock SIP technique could prove to be a wise investment.

Anny Ghosh, Senior Consultant at Alpha Capital, RIA

The recent Annual General Meeting (AGM) primarily centred around two significant announcements that had been previously disclosed to the market. The first key focus was on the unveiling of a joint venture initiative & JFSL. The second highlight was the introduction of Jio Fiber, which was identified as a potential disruptive force within the sector. Financially, the earnings reported during the AGM were consistent with market projections, reflecting a steady performance in line with the industry's expectations.

Reliance Industries' consolidated revenues stood at ₹9,74,864 crore, while EBITDA for FY23 was ₹1,53,920 crore. The net profit was ₹73,670 crore. Reliance set new records in creating employment. Reliance added 2.6 lakh jobs in FY23.

Beyond immediate financial figures, the AGM also spotlighted the company's strategic shift in its oil business. This shift involves a deliberate pivot towards Green Energy and sustainability-oriented models, indicative of the company's commitment to a more environmentally responsible approach.
Jio 5G is already present in over 96% of the census towns. And we are on track to cover the entire country by Dec '23. This makes Jio 5G the fastest-ever 5G rollout anywhere in the world.
They were very confident about JFSL's success like digital infrastructure, highest net worth & strong board members.

The share price closed at 2436.95 on the NSE, lower by 1.27 per cent amid RIL AGM announcements. Trading volumes stood at 6.28 million shares, in line with the 20-day average volume. In summary, the AGM revolved around the joint venture and the introduction of Jio Fiber as a potential industry disruptors. Financial results were in accordance with forecasts. The AGM creates a positive picture of the conglomerate in the near future.

Sonam Srivastava, Founder and Fund Manager at Wright Research, PMS

Overall General Perspective:

The Reliance AGM 2023 announcements are a testament to the company's ambitious vision for Jio's future. The promise to roll out 5G across India by year-end and the launch of JioAirFiber are significant but come with challenges such as infrastructure readiness and regulatory compliance. The addition of 2.6 lakh jobs is commendable but raises questions about job quality and sustainability. The focus on AI and smart home services is timely but will require substantial R&D and consumer education.

From an Investor Perspective:

For investors, the AGM offers both opportunities and risks. The strong financials for FY23 are encouraging, but the company's multi-front expansion could stretch resources and affect short-term gains. The board changes, including Nita Ambani stepping down and the next generation stepping in, signal a generational shift that could bring fresh perspectives but also potential missteps.

In summary, Reliance's AGM announcements are a mixed bag. They offer promising growth avenues but are laden with challenges that could impact execution. The company's ambitious plans in 5G, AI, and smart home technologies indicate a willingness to invest in future-ready businesses. However, the speed and efficiency of these rollouts, coupled with the ability to navigate regulatory landscapes, will be critical. Investors should tread carefully, balancing the potential for long-term growth against the risks inherent in rapid, multi-faceted expansion.

Mr Anirudh Garg, Partner & Head of Research at Invasset PMS

Overall General Perspective:

The Reliance Industries AGM of 2023 paints a portrait of relentless growth and ambition. Chairman Mukesh Ambani's emphasis on shaping a "New India" and achieving audacious goals is palpable, reflecting the dynamism of India's business landscape. With exceptional investments over the past decade, the company's financial performance in FY23 - revenue of Rs 9.74 lakh crore, EBITDA of Rs 1.53 lakh crore, and a net profit of Rs 73,670 crore - underscores its resilience and strategic acumen. The commitment to CSR initiatives, as evidenced by a record Rs 1,271 crore allocation, showcases a conscientious corporate stance. Jio's digital prowess, evident in its historic revenue, and the 5G expansion illustrate Reliance's transformative role in India's technological advancement.

The company's proactive job creation and unveiling of JioAirFiber further solidify its role in nation-building. The AGM serves as a testament to Reliance Industries' visionary approach and its commitment to pioneering growth.

Investor Perspective:

From an investor's lens, the Reliance Industries AGM reveals a promising landscape. The robust financial figures underscore the company's strong performance, offering confidence in its financial stability and growth potential. The revenue growth and ambitious 5G plans demonstrate Reliance's market relevance and innovation, which can positively impact its competitive positioning.

The unveiling of JioAirFiber and the creation of jobs to the company's growth narrative, indicate the potential for increased market share and revenue streams. The valuation surge of Reliance Retail and the collaboration with BlackRock in Jio Financial Services signal diversification and strategic partnerships, potentially translating into enhanced shareholder value. The AI initiatives and global expansion underscore a forward-looking approach, aligning with investor expectations for continued innovation and growth.

Nirav Karkera, Head-Research, Fisdom

The announcements reflect RIL's focus on future-proofing its business, especially through innovations in the renewable energy, digital and financial services segments. The group is clearly well-positioned to be the leading force in digital transformation led by superior internet and telecom capabilities and retail distribution of such capabilities. The joint address by RIL & BlackRock chairmen reinstates confidence in the group's commitment to foraying and scaling the asset management business. The group is clearly committed to building technology-backed personal finance solutions by committing to the launch of life, health and general insurance along with the asset management business.

Reliance Industries Share Price Target

KKunal Parar, Vice President · Choice Equity Broking Private Limited said, "Reliance is currently trading at 2443, which presents a compelling accumulation opportunity for Traders. The stock is currently in its retest phase of the breakout of its downward falling channel, combined with its Bullish ABCD Harmonic pattern, which suggests a favorable entry point for accumulation. As per the price structure in the script, we can witness the change of polarity, where the stock will find support at 2380 levels along with the confluence of 0.382 Fibonacci retracement & 100 DEMA, which indicates a strong support level for the stock. This confluence of support gives us an opportunity for Traders to gradually accumulate shares, benefiting from potential future upside momentum. Furthermore, the stock is trading above all its key moving averages on higher timeframe charts, which indicates the stock is in an uptrend."

"As per indicators Daily RSI is taking support near 40 levels and higher time frame RSI is near 60 levels which also conforms bullish trend in the script, and it is also trading near strong support levels. so our view is to Buy on Dips in Reliance on further upside momentum for the Targets of 2650/2700 and our view will negated below 2300 Levels," KKunal Parar further stated.

"After the breakout of the long trend line and triangle pattern formation on the longer timeframe, the counter has shown profit booking from the higher levels. Now it has retested its previous breakout levels at around Rs. 2420. The structure of the counter is still lucrative for long-term investors as it is trading above its important moving averages (100 and 200 DMA). MACD (moving average convergence divergence) supports the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised. On the upside, Rs. 2550 is an immediate hurdle; above this, we can expect a move towards Rs. 2630. On the downside, Rs. 2420 is a strong demand zone during any correction, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

AR Ramachandran from Tips2trades said, "Reliance industries looks bearish on the Daily charts with strong resistance at 2503. A daily close below support of 2423 could lead to a target of 2295 in the near term."

It looks like Reliance Industries is passionately following other industry leaders like Tata & Adani as Reliance has acquired multi-domain businesses nowadays. Not only this Reliance is focusing on needed-based retail business and more diversification. It cannot be denied that Reliance Group business going to divide into three hands in future and their direct involvement in the business also has increased in recent years. Reliance is one of the Heavyweight in the Nifty's. Today Reliance closed with almost 1% minus and Nifty closed with 0.21% positive. This Contra movement indicates that buyers prefer other companies over Reliance. Its Currens RSI (relative strength Index) is 55,50 and 36 at monthly, weekly and daily time frames respectively. But overall price move is suggesting some more dip in it. 2392 to 2380 is a very important support level for reliance. One should wait for some time and observe its price action at this level and based on that can make a decision. As of now if you are planning to initiate fresh long positions, at least wait for a breakout of 2475 level current market price is 2435. Keep in mind you might require averaging at some lower levels. There are possibilities that it could plunge a few percentages more and 2400 to 2310 could be considered a dip buying in the near future. remarked V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.