The trading session on Tuesday saw Reliance Industries (RIL) share price displaying lackluster movement in the early hours on the Bombay Stock Exchange (BSE). This follows the company’s recent 46th Annual General Meeting (AGM), where it outlined its strategic roadmap for the forthcoming decade. Initiating the day at ₹2,447, a slight uptick from the previous close at ₹2,442.55, the stock encountered a decline of over half a percent to reach ₹2,424. As of 9:20 am, the stock’s value had edged down by 0.40%, settling at ₹2,432.75.
During the AGM, RIL’s Chairman and Managing Director unveiled the company’s vision for expansion across technology, retail, and the financial sector. Moreover, a notable aspect highlighted in the AGM was RIL‘s emphasis on establishing a steady succession roadmap. In line with this objective, the RIL Board proposed the appointment of Isha Ambani, Akash Ambani, and Anant Ambani to the Board of Directors.
Mukesh Ambani, while addressing the attendees, expressed his intention to guide and mentor the new board members. He affirmed his commitment to serving as the Chairman and Managing Director of for an additional five years.
In the preceding session, the stock experienced a 1.11% drop, closing at ₹2,442.55 on the BSE post the AGM. Analysts attributed this decline to the absence of anticipated announcements pertaining to the Initial Public Offerings (IPOs) of both Reliance Retail and Jio.
Notable Projections and Analyst Views
Analysts from brokerage firms hold optimistic views on RIL’s future performance. Despite the post-AGM stock dip, the consensus points towards a robust 14-15% Compound Annual Growth Rate (CAGR) for Earnings Per Share (EPS) over the upcoming three to five years. This projection is bolstered by the anticipated rise of Jio’s Average Revenue Per User (ARPU) at a 10% CAGR throughout FY23-28.
ICICI Securities, a prominent brokerage firm, maintained an ‘add’ recommendation for the stock with a target price set at ₹2,650. The firm’s analysis highlighted RIL’s Return on Capital Employed (RoCE), which has maintained a moderate level over the last four to five years. This trend has been attributed to a significant increase in capital employed, which consistently outpaces earnings growth.
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