Factors to watch at RIL’s 41st AGM on June 12

MUMBAI: Reliance Industries Ltd ( RIL) will hold its 41st AGM on Friday, an event where the Chairman along with the entire board interacts with the shareholders at an open forum. In the past 10 years, the stock has gained 6 times in a five-day period prior to the AGM.

Ahead of the event, shares of Reliance Industries rose 1.2 per cent to hit its intraday high of Rs 887.95.

Analysts expect the company to announce launch date, total capex and future plans for Reliance Jio at the AGM. Reliance Jio has invested about Rs 30,000 crore so far in the telecom business.

Shareholders would also want to know the company's plans for its retail e-commerce business. The management commentary on gas price from ultra-deep blocks will also be something to watch out for.

"Key things to watch for Reliance would be the Rel Jio launch and the company's strategy to build a strong customer base here. Pricing strategy will be keenly watched as Reliance Jio is a new player on the block in the telecom business," says Avinnash Gorakssakar, CIO and Head Research at Precision Investment Services.

"Additionally, the progress on re-opening of the Reliance Petrol Pumps will also be another news flow which will be awaited, as also the strategy for E-commerce and Retail going ahead," he adds.

In the traditional E & P segment, investors would want to hear the outlook on the KG D6 gas supply. Outlook on GRMs and throughput increase will be important factors the markets would look at.

The stock has plunged nearly 20 per cent in the last 1 year, but analysts are of the view that the worst is over for the stock and investors should look at adding RIL on every decline.

"We will continue to add positions in RIL. We think the worst is over for the stock now. It has been a huge underperformer. Cash flows are starting to improve as less money is spent on the new businesses," Andrew Holland, CEO, Ambit Investment Advisors, told ET Now.

"We are going to see a lot more news flow, both on the retail and the telecom side. It will be more positive than negative and this will help Reliance. So, we want to buy RIL and just stick there for the next six to nine months," he added.

Deepak Shenoy, founder, Capital Mind, is of the view that Reliance Industries has stopped making big decision, make big announcements on their earnings days. He said he hoped to be positively surprised this time around.