RIL AGM: How analysts interpret the announcements

The near consensus is that these announcements are in-line with the company's strategy

At its 40th Annual General Meeting (AGM), Mukesh Ambani, chairman, Reliance Industries announced investment plans totalling Rs 1.8 lakh crore across its business segments with the investment spanning the petchem, retail and telecom segments.

Here are a few market reactions and how analysts interpret these announcements:

Ambareesh Baliga, managing partner (global wealth management), Edelweiss Financial Services:

RIL plans to invest Rs 70,000 crore in the telecom business segment. I think this will be a game - changer not only for the company but for the entire telecom sector. New facilities should also come on stream soon and RIL expects margin expansion here. In fact, the company expects margin expansion in the refining business segment as well.

As regards retail, I feel that the learning phase is over and the margins should improve going ahead. I have been bullish on RIL and the stock still merits a buy at the current levels.

Vaibhav Sanghavi, director - equities at Ambit Investment Advisors:

The company has been investing regularly in the business segments it operates in. So, these announcements are in-line with the company's strategy. However, the telecom sector does present a huge opportunity for RIL and could be a game - changer going ahead.

Tirthankar Patnaik, director (institutional research), Religare Capital Markets:

We have a HOLD rating on the stock. While there is some cause for cheer in the retail business, we feel that most of the positives are already priced in.

Sunil Jain, vice president - equity research at Nirmal Bang:

The company has been investing heavily since the past two years and this will continue for a few more years. I think the stock is a good bet for someone who has an investment horizon for two years. From the current levels, it can touch Rs 1,400 levels in the next two years.