RIL AGM: Reliance Shares Cross Rs 3,000 Ahead Of Mukesh Ambani's Speech; IPO-To-Energy, What To Expect?

Reliance Industries (RIL) share price is in focus on Thursday, August 29, 2024, ahead of the company's 47th annual general meeting (AGM). In the early trade, the heavyweight stock crossed the Rs 3,000 mark and rose by nearly a per cent. The stock opened higher. Market participants are eyeing views on IPOs of Jio and retail businesses, coupled with developments in new energy from billionaire Mukesh Ambani.

At the time of writing, Reliance's share price traded at Rs 2999 apiece, marginally up on BSE with a market cap of Rs 20,28,932.72 crore. The stock has touched an intraday high of Rs 3014.95 apiece, up by 0.64% in the early trade.

Reliance is a couple of rupees away from its 52-week high mark of Rs 3,217.90 apiece.

What To Expect In RIL AGM?

As per JM Financial, key expectations from the 29th Aug'24 AGM are around any update on a) the potential timeline for listing of Retail and Digital businesses; any potential strategic stake sale in O2C business; b) an update on the progress of various projects underway in New Energy business with timelines around project commissioning and potential earning potential from this projects; c) any update on 5G monetisation plans; and d) any further update around succession plans.

JM cited that in the annual report of FY24, Reliance reiterated its goal of achieving a net carbon zero target by 2035 by transforming itself into a sustainable, circular, and net carbon zero material business. The company's integration across the New Energy value chain will likely make clean energy accessible and affordable and result in energy self-sufficiency for India.

Also, the brokerage pointed out that Reliance restated the New Energy business roadmap and reported rapid progress in the setting up of the 5 Giga factories: a) phase-wise scale-up of solar PV cell and module factory at Jamnagar to 20GW by 2026; b) 20GW solar capacity will be established by 2025 for captive power needs and green hydrogen production; c) commence transition from Grey hydrogen to Green Hydrogen from 2025; d) plans to industrialise sodium ion cell production at a megawatt level and aims to take it to gigawatt scale; e) battery packs production to scale up to 50GWH capacity annually by 2027; and f) 100GW of solar energy capacity will be established and enabled by 2030.

Meanwhile, as per JM, the company's Petchem margin continues to be weak driven by huge capacity addition, particularly in China, amidst muted growth in global Petchem demand. However, RIL's petchem margin and volume have been relatively better due to an optimised feed mix and robust domestic demand. Further, the refining margin is likely to continue to be robust on steady global oil demand growth led by Asia; and RIL has been able to continue to maximise margin with feedstock sourcing advantage (from Russia, Venezuela etc.), yield optimisation and superior product placement.

Notably, Jio has rolled out 5G services pan-India via standalone architecture, with +108mn subscribers (subs) migrated to Jio's 5G network at end-Mar'24 (vs ~72mn for Bharti) and ~130mn subs at end-Jun'24 (vs. ~90mn for Bharti). Jio's pan-India rollout of JioAirFiber has expanded the addressable market and, hence, it reiterated its target to reach 100mn premises through a combination of fiber and fixed wireless solutions vs. ~12mn currently, JM's note said.

Should You Buy Reliance Share? JM's note said, "We reiterate BUY (unchanged TP of INR 3,500/share; and 3-year TP of INR 4,600) as we believe concerns on debt are overdone as we expect RIL's capex and net debt to have peaked in FY24 and likely to decline gradually with moderation in capex (to INR 1.2trln-1.3trln p.a. vs. INR 1.3 trn in FY24 and INR 2.3trln in FY23) but, importantly, also be fully funded by a gradual increase in internal cash generation."

The brokerage further said that RIL highlighted in its FY24 annual report that it will continue to monitor financial markets to seize suitable opportunities for capital-raising to support its growth plans. Be that as it may, JM said, "We believe RIL could still drive a robust 16-17% EPS CAGR over the next 3-5 years with Jio's ARPU expected to rise at ~11% CAGR over FY24-28 with ARPU being on a structural uptrend given the consolidated industry structure, higher ARPU requirement to recover significant 5G capex and to avoid a duopoly market - A Giant Digital Leap."

Moreover, JM added, "Retail EBITDA is also expected to grow at 20-25% on continued strong growth momentum as RIL is driving omni-channel capabilities across segments. Further, listing of Jio and Retail business over the next few years could lead to a potential re-rating."

Where To Watch RIL AGM?

Anyone can watch RIL AGM through Video Conferencing ("VC") / Other Audio-Visual Means ("OAVM") from 2 PM (IST) onwards. Also, the Live Video (Clean Feed) of RIL's Chairman & Managing Director Shri Mukesh D Ambani's speech will be made available on the following sources simultaneously:

JIOMEET

Link: https://jiomeet.jio.com/rilagm/joinmeeting

Click on OTHERS, enter your FULL NAME & ORGANISATION, and CAPTCHA CODE that will appear on your screen, to join the AGM. Access will be available 30 minutes before the scheduled time of the AGM.

RTMP URL: DIRECT RECEIVE

Primary Stream Link - rtmp://136.233.57.194/event
Secondary Stream Link - rtmp://115.242.75.203/event/rilagm2024

YOUTUBE

Reliance Updates Channel: https://www.youtube.com/@RelianceUpdates
Playback URL: https://youtube.com/live/myn2DqU3094

Jio Channel: https://www.youtube.com/jio
Playback URL: https://youtube.com/live/tDOvHUBpMlU?feature=share

FACEBOOK

Reliance Industries Limited Page: https://www.facebook.com/RelianceIndustriesLimited
Playback URL: https://www.facebook.com/events/1676091356502674/

Jio Page: https://www.facebook.com/Jio
Playback URL: https://www.facebook.com/events/1241770857010122/

X Handler

@RIL_Updates (https://x.com/ril_updates)
Playback URL: https://x.com/i/broadcasts/1mnGeAZvaBZGX

@RelianceJio (https://x.com/reliancejio)
Playback URL: https://x.com/i/broadcasts/1YqxovbpzzBJv

INSTAGRAM

@RelianceUpdates (https://www.instagram.com/relianceupdates)

@RelianceJio (https://www.instagram.com/reliancejio)

Hashtags are #RILAGM and #RelianceforALL.