Reliance Industries opens on a subdued note ahead of AGM
According to analysts, RIL in the upcoming AGM is expected to throw some light on its future business policy across all segments.
By ET Online |
NEW DELHI: Reliance Industries Ltd slipped over 1 per cent in morning trade on Thursday ahead of its 39th AGM for FY2012-13 scheduled for later today. Investors will be watching for any clues regarding its future course of action, say analysts.
At 10:40 a.m.; RIL was trading 0.8 per cent lower at Rs 794.00. It has hit a low of Rs 791.20 and a high of Rs 802 in trade today.
According to analysts, RIL in the upcoming AGM is expected to throw some light on its future business policy across all segments, which they reckon will instill confidence amongst the share owners.
"Along with that there is also expectation on clarification of the strategy Smart Transformation at Reliance (STAR)," said Soumyadip Raha, Executive Research-Oil & Gas at Microsec Capital Ltd.
STAR is the new business initiative undertaken by the company to make Reliance Industries a future ready company in all aspects.
In the last AGM, the company proposed a capex bifurcated into different quantum across sectors (E&P-$11bn, Refining $4bn, Petchem $8bn, Infocomm $3bn, Retail $1bn) over a period of 3-4 years.
The company is likely to explain how much and where the capex has been utilised.
According to Raha, the company proposed a dividend of Rs 9.00 per equity share, which is subject to approval and may probably get materialised. The company may discuss plans on utilisations of its huge cash reserves.
In Q4FY2013, Reliance Industries Ltd posted an adjusted net profit of Rs5,589 crore up 31.9 per cent year on year, which is largely in line with our as well as the street’s estimates.
The strong earnings growth is supported by a better than expected gross refining margin (GRM) of $10.1 per barrel and strong other income of Rs 2,243 crore.
The RIL stock is trading at price earnings (PE) of 12.3x discounting its FY2014E earnings per share (EPS) and EV/EBITDA of 9.3x on FY2014, Sharekhan said in a note.
At 10:40 a.m.; RIL was trading 0.8 per cent lower at Rs 794.00. It has hit a low of Rs 791.20 and a high of Rs 802 in trade today.
According to analysts, RIL in the upcoming AGM is expected to throw some light on its future business policy across all segments, which they reckon will instill confidence amongst the share owners.
"Along with that there is also expectation on clarification of the strategy Smart Transformation at Reliance (STAR)," said Soumyadip Raha, Executive Research-Oil & Gas at Microsec Capital Ltd.
STAR is the new business initiative undertaken by the company to make Reliance Industries a future ready company in all aspects.
In the last AGM, the company proposed a capex bifurcated into different quantum across sectors (E&P-$11bn, Refining $4bn, Petchem $8bn, Infocomm $3bn, Retail $1bn) over a period of 3-4 years.
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The company is likely to explain how much and where the capex has been utilised.
According to Raha, the company proposed a dividend of Rs 9.00 per equity share, which is subject to approval and may probably get materialised. The company may discuss plans on utilisations of its huge cash reserves.
In Q4FY2013, Reliance Industries Ltd posted an adjusted net profit of Rs5,589 crore up 31.9 per cent year on year, which is largely in line with our as well as the street’s estimates.
The strong earnings growth is supported by a better than expected gross refining margin (GRM) of $10.1 per barrel and strong other income of Rs 2,243 crore.
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The RIL stock is trading at price earnings (PE) of 12.3x discounting its FY2014E earnings per share (EPS) and EV/EBITDA of 9.3x on FY2014, Sharekhan said in a note.
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