Reliance Industries Shares Have Declined On Most AGM Days In Last 10 Years

Mukesh Ambani led-RIL will conduct its 47th AGM on Aug. 29 at 2:00 p.m. IST, according to the company's statement.

In the last 10 such meetings, the scrip has declined in seven instances with the counter plunging as much as 6.2% in its 2020 meet. In the last annual general meet on Aug. 28, 2023, its shares declined as much as 1.51% during the day and pared losses to close 1% lower.

It was only in 2019 that the stock rose the next day of trading, as the markets were shut during its AGM.

The shares were up 12.1% and later closed with gains of 9.69% as the conglomerate announced its key deal with Saudi oil major Aramco, to take a 20% stake in its oil refinery and chemical business. That meet also marked the rollout of its JioFiber services along with Jio's Internet of Things platform.

In the week ahead and after the AGM, the stock has posted a mixed picture. Five times the counter fell in a week ahead of the key meet, while eight times the stock inclined positively after the AGM. In three such instances, the scrip gained over 8% in the week after the meeting.

Shares of the company have risen 23% in the last 12 months and 16% on a year-to-date basis. Twenty-five out of 36 analysts tracking the company have a 'buy' rating on the stock, eight recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 10%.

The AGM will also try to assuage investors after the net profit of the conglomerate declined in the quarter ended June 30, 2024, with the margin contracting 120 basis points.

Net profit of the Mukesh Ambani-led company dropped 17.9% sequentially to Rs 17,445 crore for the April-June period, compared with the Bloomberg estimate of Rs 17,654.9 crore.

The company's net debt fell 11.27% over a year ago to Rs 1,12,341 crore at the end of first quarter ending June 2024. Net debt-to-Ebitda was 0.66 times higher than 0.76 a year ago. In the previous quarter, net debt was Rs 1,16,281 crore and net debt-to-Ebitda stood at 0.62 times.

The billionaire's announcement in key verticals such as retail, telecom and oil and gas will be watched out for in its upcoming AGM.