RIL slips 6% in two days post AGM; stk trades lower for fourth straight day

Shares of Reliance Industries fell as much as 3.4 per cent to Rs 2,081 on the BSE in intra-day trade on Friday, thus falling 6 per cent in the past two trading days. The company's Chairman and Managing Director Mukesh Ambani, on Thursday, had announced a Rs 75,000 crore investment in setting up four 'Giga' factories to make solar photovoltaic cells, green hydrogen, batteries and fuel cells over the next three years. The stock was trading lower for the fourth straight day, falling 7 per cent during the same period.

Addressing the company's 44th annual shareholder meeting, Ambani said Reliance will set up 100 GW of solar power generating capacity, mostly through rooftop installations and de-centralised operations in villages. CLICK HERE FOR FULL REPORT

“With the peak of the investment cycle behind in RJio and Reliance Retail, it now plans to invest Rs 75,000 crore towards this ambition over the next three years. Our FY22/FY23capex estimate of Rs 85,000 crore/Rs 50,000 crore does not capture this development,” Motilal Oswal Securities said in stock update.

RIL plans to create a 5,000 acre Green Energy Giga complex in Jamnagar, and build four Giga factories to manufacture solar photovoltaic cells, energy storage batteries, electrolyzers for the production of green hydrogen, and fuel cells. It plans to establish a 100GW solar energy capacity by 2030. RIL plans to repurpose its existing business without any asset write-downs and aims to be a zero-emission company by 2035 – providing a multi-decadal growth path through this growth engine.

The higher multiple for the Digital business captures the revenue opportunity, potential tariff hikes, and opportunity in the Feature Phone market. The higher multiple for the Retail biz captures the acceleration in store openings, digital commerce, and the new JioMart platform, the brokerage firm said with a ‘buy’ rating on the stock and target price of Rs 2,430 per share.