Reliance AGM Today: Key Announcements to Watch and Trading Tips for Investors

At the 47th Annual General Meeting (AGM) of Reliance Industries Ltd (RIL) today, investors are expecting major announcements that could boost the company’s stock value.

Key Expectations for RIL AGM:

1. Jio’s Growth and Potential IPO:
   Jio, Reliance’s telecom arm, is showing strong growth, thanks to a recent increase in tariffs, the expansion of 5G services, and a growing user base. Amar Nandu, a research analyst at SAMCO Securities, notes that Jio is a key driver of RIL’s growth. Jio is currently valued lower compared to its competitor, Bharti Airtel, which suggests there’s potential for a significant value increase if Jio goes public.
2. Reliance Retail’s Robust Growth:
   Reliance Retail Ventures is also growing rapidly, contributing 30% of RIL’s revenue in FY2024. An IPO for Reliance Retail could significantly increase the company’s market value, according to Nandu.
3. Possible IPO Announcements:
   Investors will be looking for updates on the IPO timelines for both Jio and Reliance Retail. In 2019, Mukesh Ambani mentioned that Jio would go public within five years. Updates on this plan are expected at today’s meeting.
4. Unlocking Value:
   RIL might announce plans to list its various business segments separately. This could help unlock the company’s true market value, as the current overall market valuation is lower than the combined value of its individual businesses.
5. Past AGM Announcements:
   Last year, RIL outlined a five-year succession plan for Mukesh Ambani’s three children, marking a major development for the company. Historically, RIL’s AGMs have featured significant growth announcements, and investors are expecting more of the same today.

How to Trade RIL Shares Ahead of the AGM:

• Sahaj Agrawal, Head of Derivatives Research at Kotak Securities:
  Agrawal suggests that RIL is trading with a positive outlook in the medium term. He recommends buying on dips, with support at ₹2,690 and resistance at ₹3,200-3,300. A collar strategy is advised for protection against downside risks while allowing for gains if the stock trends upwards.
• Ajit Mishra, SVP of Research at Religare Broking:
  Mishra notes that RIL is consolidating around the ₹2,850 support level and suggests using a bullish options strategy ahead of the AGM, such as a bull call spread. This involves buying a ₹3,000 call option and selling a ₹3,100 call option, with immediate support at ₹2,950. New momentum could be expected if the stock breaks above the ₹3,050 level.

RIL Share Performance:

• Over the past year, RIL shares have gained 22.65%, including a 15.7% increase this year and a 3% rise in the last six months.

RIL Shares on AGM Days:

• In the past decade, RIL shares have ended lower on the AGM day six times. The worst drop was in 2020 when shares fell 3.71% due to profit-taking after major announcements. The best performance was in 2019, with a 9.72% gain following positive announcements about Saudi Aramco’s investment (which was later withdrawn) and plans to make RIL debt-free.

Overall, today’s AGM could provide important updates and opportunities for investors, especially regarding potential IPOs and growth strategies.