Reliance Industries Limited (RIL) will host its 44th Annual General Meeting on June 24. Several key announcements are expected at the meeting, American financial services firm and bank JP Morgan has said.
RIL Chairman and Managing Director Mukesh Ambani will commence the meeting, which will begin at 2 pm. The annual event will be streamed live on Facebook, YouTube and Twitter.
JP Morgan said that upside movement in RIL’s stock would be unlikely given that the company has had positive trends in the run-up to the AGM. RIL stock gained 17 percent over the last six weeks, when NIFTY only climbed 7 percent.
“In our view given the tepid operational environment and hence earnings outlook, for the stock to continue its outperformance from here, RIL would have to deliver some large unexpected positive announcements,” read JP Morgan’s report.
Here are the key announcements that experts predict Ambani may make during the AGM:
Launch of low cost 5G smartphone
RIL may announce the launch of Jio 5G smartphone during the AGM. The mobile phone is expected to be an entry-level budget smartphone made in partnership with Google. The phone is likely to be priced between Rs 2,500 and Rs 5,000.
Whatsapp-JioMart Kirana partnership
Reliance Retail and JioMart have aggressively tried to establish their space in the competitive retail sector in India. Reliance plans to partner with more kirana stores for its retail sphere. Investors are expecting an announcement of key details about the next stage of the process.
Possible induction of ARAMCO Chairman Yasir Al-Rumayyan on RIL board
The talks between Aramco and RIL were expected to conclude by May 2020 but were delayed due to the global pandemic. There is speculation that the chairman of Aramco, Yasir Al-Rumayyan may join the board of directors of RIL.
“While any such move would be a positive step, in our view investors are expecting more clarity on the O2C stake sale and timelines on completion given nearly two years have passed since the first time it was announced,” the JP Morgan report stated.
Green Energy/Hydrogen Capex/Project details
Recent comments from RIL and Ambani suggest that the firm is likely to move towards transforming into a ‘green company’. “We have no option as a society, as a business but to really adopt a sustainable business model,” Ambani had said while speaking at the Qatar Economic Forum.
Investors will be expecting more clarity on RIL’s plans for achieving this green transformation and the roadmap for the next two to three years.
(Edited by : Kanishka Sarkar)
First Published: IST