Reliance Industries (RIL) is likely to make major announcements in its 48th upcoming annual general meeting (AGM). Experts predict that billionaire Mukesh Ambani's focus would be upon doubling businesses of Jio, Retail and New Energy. But before AGM, Reliance will be turning ex-dividend next week for its first dividend after the mega 1:1 bonus issue. Should you buy this oil and gas giant?
Reliance Industries Share Price:
After market hours of July 9, RIL stock closed at Rs 1367.95 apiece on BSE, with a market cap of Rs 18,51,174.59 crore. The stock has dropped by nearly 3% during this week's overall session.
The largest oil and gas stock has a return on equity of 8.69%, while the price-to-equity ratio is at 40.64x as of now.
Reliance Industries Dividend Record Date:
A day before the Independence Day celebration, the Reliance Industries stock price will turn ex-dividend on August 14. This is also the record date for determining the members eligible to receive dividends for the financial year 2024-25.
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.
Notably, the dividend amount will be announced during the AGM.
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.
Reliance Industries Annual General Meeting (AGM) Expectations:
According to Nuvama, here's what can be expected in RIL's AGM:
1. New Energy:
The brokerage is expecting an update on its fully integrated polysilicon-to-module, electrolyser and battery manufacturing facility. RIL targets to operationalise the NE platform in four-six quarters, and expects it to become self-funded over the next few years. Progress on efficiency (>30%) improvement through next-generation Perovskite technology. Use of captive green power shall cut cost by 25%; we conservatively reckon a 6.4% addition to PAT.
2. JIO and Retail:
While the market awaits indication of timelines for Reliance's JIO and Retail IPOs, we believe the JIO and Retail IPOs, if listed separately, shall attract higher values, but may not have material impact on RIL shareholders as it may be offset by a holdco discount. Progress on doubling of JIO and Retail EBITDA in the next three-four years-as indicated at the last AGM-is keenly awaited. Upon streamlining, growth in its Retail business remains crucial for investors. An update on Jio Hotstar monetisation and FMCG expansion is awaited.
3. O2C and E&P:
O2C - Huge petchem capacity expansion-polyester (5mtpa), vinyl (3.9mtpa), carbon fibre (20ktpa)-by FY27 remains a key variable to monitor as RIL's focus now shifts to O2C. E&P - RIL plans to drill additional wells by H2CY28E to enhance gas production and offset the natural decline at KG-D6 basin.
BUY Reliance Industries Stock Price?
"Our Golden Refining era thesis for USD10+/bbl in GRM is intact. RIL's NE rollout shall not only add 50%+ to PAT, but also re-rate its valuation (potential EV of USD20bn), including O2C business given its net-zero carbon target by 2035E. RIL's net debt remains modest at INR1.18tn and keeps WACC in check. We retain 'BUY' with a TP of INR1,733," said Nuvama's note.
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.
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