Reliance Industries (AGM) Expectations: BUY RIL For Rs 1750 Highest TP; 1st Dividend On Aug-29 After 1:1 Bonus

Reliance Industries (RIL) share price traded cautiously on August 28, ahead of its upcoming 48th annual general meeting (AGM), which is scheduled on August 29. RIL shares hovered between Rs 1,360 and Rs 1,390 in the day. Investors are hoping for key announcements related to the Jio and Retail IPOs along with developments for the new energy business. Also, Mukesh Ambani is scheduled to declare the first dividend on August 29 after its mega 1:1 bonus issue.

Majority of experts believe that the developments in AGM could unlock new values for Reliance Industries (RIL) ahead, and hence they have recommended either an OUTPERFORM, OVERWEIGHT OR BUY rating.

Reliance Industries Share Price:

At the time of writing, Reliance was mildly in red to trade at Rs 1384.60 apiece, down 0.05% on BSE with market cap of Rs 18,72,894.21 crore. The stock traded in between the intraday high and low of Rs 1389 to Rs 1367 apiece respectively.

Should You BUY Reliance Ahead Of AGM?

Global brokerage UBS has recommended a BUY rating, with the highest target of Rs 1,750 apiece on Reliance. The experts here believe that Reliance is developing India's digital and new energy future, while its Jio and Retail businesses are stepping into their 'harvesting phase.' Additionally, Reliance's diversified Oil-to-Chemicals (O2C) business lowers cyclicality as the new energy business expands in the coming years.

The new energy business is expected to contribute to Reliance's earnings growth from the next fiscal year.

Meanwhile, brokerage JP Morgan has suggested OVERWEIGHT on Reliance. The investments are these:

Prior to venturing into retail/telecom, RIL's earnings growth was determined by either capex (new refining/chemical capacities) or margin cycles. Capex cycles then tended to impact stock performance. Reliance Retail + Telecom now account for ~54% of total FY25 consolidated EBITDA.

JP analysts believe that retail and telecom will account for almost all of the net EBITDA growth over the next three years. RIL has operated at materially negative FCF for the last three years, driven by spending in Telecom. As that fades, with an EBITDA run rate of c.$20bn per year.

"Reliance should deliver positive free cash flow, in our view (despite elevated capex plans at the New Energy complex and in the Retail business, and toward petchem capacity expansions). Recent company guidance of maintaining net debt to EBITDA of less than 1x also implies positive FCF generation. We rate the stock OW," said JP's note. Accordingly, the target price is set at Rs 1,695.

Reliance Industries AGM Expectation:

As per CLSA, its FY25 annual report highlighted its accelerated home connection adoptions driven by AirFiber, making it confident of reaching 100m homes through a combination of Fiber and AirFiber. Any hints on the timeline for Jio's IPO and further details on its AI strategy in the AGM will be closely tracked by investors.

The last date for e-voting is fixed on August 28, 2025, for shareholders.

Reliance Industries Dividend:

On August 29, one of the much-awaited developments is Reliance's proposal for dividend payout. In its filing, Reliance said that the dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM.

The record date for the upcoming dividend has passed. The company fixed August 14 as the record date to determine eligible shareholders for the dividend ahead. This means that if on August 29, there is a dividend announcement, only those shareholders will be eligible who held RIL shares as of August 14, 2025. New shareholders from August 15 will not be eligible.

This will become Reliance Industries' first dividend after its big 1:1 bonus issue. So far, Reliance has delivered up to 3 bonuses. All three bonus issue ratios are 1:1 each, and their ex-dates are in November 2009, September 2017, and October 2024.

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.