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RIL’s 37th AGM – Key Takeaways
Mukesh Ambani at the 37th Annual General Meeting (AGM) highlighted the strength of the
company’s financial position and expects the company to be debt free by the end of the
current financial year. As of March 31, 2011, RIL had cash and cash equivalent of
`42,393cr and debt of `67,397cr. Mr. Ambani expects the next growth driver for the
company to be the retail and broadband services businesses and will consider partnering
with world leaders to enter other new business avenues, besides making investments in its
extant business.
Following are the highlights of the AGM:-
On the retail front, Mr. Ambani highlighted the position of Reliance Retail as the largest
food retailer in India and expects it to be an undisputed leader in India. He sees, Reliance
Retail to be the pivot of all the company's consumer-facing businesses. Thus, the company
plans to aggressively invest in the retail business and intends to soon launch cash and
carry format stores.
On the broadband front, Mr. Ambani sees transformational potential in the broadband
wireless business and expects it to be the next big leap in digitalisation. Currently, RIL is
engaged in conceptualising digital products and plans to build a national broadband
infrastructure.
On the extant business, Mr. Ambani highlighted that the company plans to increase
polyester capacity to 3.6mmtpa; whereas on the petrochemical side, it is setting up
1.5mmtpa gas cracker at Jamnagar refinery. On the E&P business, Mr. Ambani
highlighted the RIL-BP partnership as unprecedented and transformational and said that
efforts are underway to comprehend the complexity of KG-D6 reservoirs. Thus, the
company plans to ramp up KG-D6 gas production in a sustainable manner.
We continue to remain positive on the growth prospects of RIL, with the refining and
petrochemical businesses currently doing well, although there are some concerns on the
KG basin gas output. Nevertheless, we believe RIL’s deal with BP is a positive one, as the
combined expertise of both the parties will result in optimisation of producing blocks and
enhancement of resources in exploratory blocks. On the valuations front, the stock is
currently trading at 12.1x FY2013E EPS of `77.2. We maintain our Buy rating on RIL with a
target price of `1,189.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RIL’s 37th AGM – Key Takeaways
Mukesh Ambani at the 37th Annual General Meeting (AGM) highlighted the strength of the
company’s financial position and expects the company to be debt free by the end of the
current financial year. As of March 31, 2011, RIL had cash and cash equivalent of
`42,393cr and debt of `67,397cr. Mr. Ambani expects the next growth driver for the
company to be the retail and broadband services businesses and will consider partnering
with world leaders to enter other new business avenues, besides making investments in its
extant business.
Following are the highlights of the AGM:-
On the retail front, Mr. Ambani highlighted the position of Reliance Retail as the largest
food retailer in India and expects it to be an undisputed leader in India. He sees, Reliance
Retail to be the pivot of all the company's consumer-facing businesses. Thus, the company
plans to aggressively invest in the retail business and intends to soon launch cash and
carry format stores.
On the broadband front, Mr. Ambani sees transformational potential in the broadband
wireless business and expects it to be the next big leap in digitalisation. Currently, RIL is
engaged in conceptualising digital products and plans to build a national broadband
infrastructure.
On the extant business, Mr. Ambani highlighted that the company plans to increase
polyester capacity to 3.6mmtpa; whereas on the petrochemical side, it is setting up
1.5mmtpa gas cracker at Jamnagar refinery. On the E&P business, Mr. Ambani
highlighted the RIL-BP partnership as unprecedented and transformational and said that
efforts are underway to comprehend the complexity of KG-D6 reservoirs. Thus, the
company plans to ramp up KG-D6 gas production in a sustainable manner.
We continue to remain positive on the growth prospects of RIL, with the refining and
petrochemical businesses currently doing well, although there are some concerns on the
KG basin gas output. Nevertheless, we believe RIL’s deal with BP is a positive one, as the
combined expertise of both the parties will result in optimisation of producing blocks and
enhancement of resources in exploratory blocks. On the valuations front, the stock is
currently trading at 12.1x FY2013E EPS of `77.2. We maintain our Buy rating on RIL with a
target price of `1,189.
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