 "Reliance Aims for Double Growth by FY28 Amid Mixed Analyst Sentiments")
At Reliance Industries’ 47th Annual General Meeting, Chairman Mukesh Ambani announced ambitious plans to double the company’s size by FY28. Despite this, analysts remain cautiously optimistic, noting that the stock price reflects much of the good news already. The company is focusing on advancements in artificial intelligence for Reliance Jio and using deep-tech initiatives to enhance Reliance Retail’s customer experience. While the new energy sector is poised for growth, it requires substantial investment, and existing divisions face challenges. With a projected earnings growth of around 13% over the next few years, investors are keenly watching for future developments, including potential spin-offs of Jio and Retail businesses.
Reliance Industries Plans Major Expansion By FY28
Mukesh Ambani, Chairman of Reliance Industries, announced ambitious plans at the company’s 47th Annual General Meeting (AGM) to double its size by FY28. The company aims to transform itself into a deep-tech leader with advanced manufacturing capabilities while focusing on its core sectors: oil to chemicals (O2C), retail, and digital services.
Despite this positive outlook, analysts remain cautiously optimistic. The share price of Reliance Industries saw a minor dip of 0.7 percent recently, settling at Rs 3,020 per share, while the broader BSE Sensex rose significantly. Some analysts believe the AGM lacked significant announcements, particularly regarding the ‘New Energy’ segment, which requires more capital investment than the previously stated Rs 75,000 crore.
In the retail sector, Reliance Retail has plans to leverage deep technology for enhancing customer experience and aims to double its revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) over the next three to four years. Similarly, Reliance Jio is set to build a robust AI infrastructure and aims for substantial revenue growth in the same timeframe.
Looking forward, the company also outlined its commitment to new energy projects and enhancements in its chemical capacities, aiming for substantial profitability growth in the coming years.
While there are no immediate catalysts for the stock’s surge, the potential separate listings of Reliance Jio and Reliance Retail could provide significant future value. Analysts remain positive about Reliance’s core businesses, anticipating strong long-term earnings growth despite current Market challenges.
First Published: Aug 30, 2024 | 11:36 AM IST.
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What is the current trend for RIL’s share price?
RIL’s share price is expected to stay mostly flat because there are no major announcements from the recent annual meeting. -
Why are investors concerned about the AGM announcements?
Investors were hoping for big announcements that could boost the company’s growth, but there were none, leading to a more cautious outlook. -
What does "sideways" mean in terms of share price?
"Sideways" means that the share price is not moving up or down significantly; it stays around the same level for a while. -
Should I buy or sell RIL shares now?
It depends on your investment goals. If you’re looking for quick gains, it may not be the right time. But if you’re in it for the long term, you might want to consider holding. - What factors could change RIL’s share price in the future?
Future announcements, changes in the Market, new business deals, or economic conditions can all affect RIL’s share price.
