Not much expected from RIL's 38th AGM: P Phani Sekhar, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on RIL's AGM.

ET Now: What is the expectation from Reliance's 38th AGM and do you think something significant by way of gas pricing could come about?

P Phani Sekhar: Not much is expected because the new ventures like retail or 4G are already well known in the markets. They have used previous AGMs to announce these ventures. As far as gas pricing is concerned, nothing is in their hands. Given a chance, they would like to increase the gas prices but it cannot be unilateral. So till FY14, I do not see any chance for increasing gas prices.

More importantly, since it is contingent on the cabinet decision, I do not see how they can use the AGM to announce this event. So, at the margin it is important for an incremental plan for rollout of 4G. This is because of late in the media space, the speculation has been derived that they have been sprucing up on the distribution on the content side. It remains to be seen as to what is the final execution in 4G and what they do with the cash.

Furthernore, the state of the buyback is to be watched and whether they would be inclined to increase the size of the buyback if the stock price refuses to go up in the months to come. So, these will be the 2 things that will be more closely tracked.