Shares of Reliance Industries (RIL) fell 3% to Rs 2,305 on BSE in Tuesday’s intraday, down 7% in the past two trading sessions, despite the company clarifying the loan of Rs 750 crore granted to Shapoorji Pallonji Company by its subsidiary Reliance Ventures Limited (RVL).
A sharp decline in share prices has been observed, RIL’s market capitalization has declined by 1.17 trillion rupees in the last two trading days. As of 10:30 a.m., the stock was trading down 2.4% at Rs 2,321 on the BSE, against a drop of 0.47% on the S&P BSE Sensex. The market capitalization of the company stood at 15.69 trillion rupees, according to BSE data.
“The making of the loans described in the media report by Reliance Ventures Limited (RVL), a non-banking finance company registered with RBI, to Sterling and Wilson Private Limited (SWPL) did not require any disclosure under Regulation 30 of LODR and therefore no disclosure was made by Reliance Industries Limited (RIL),” the company said in an exchange filing.
Reliance New Energy Limited (RNEL) (formerly known as Reliance New Energy Solar Limited) entered into definitive agreements on October 10, 2021 to acquire a 40% stake in Sterling and Wilson Renewable Energy Limited (SWREL) (formerly known as the name of Sterling and Wilson Solar Limited).
RVL, in the normal course of business, through a separate agreement, entered into two Facility Agreements with SWPL on October 10, 2021, to provide secured loans totaling Rs.750 crore to SWPL (Facility Agreements). RVL is a wholly owned subsidiary of RIL, the company said. CLICK HERE FOR DECLARATION
Meanwhile, the company had released after-hours December quarter results on Friday.
Analysts say strong performance in the October-December quarter (Q3 or Q3) of 2021-22 (FY22), improved outlook across all verticals and marginal upward revision to estimates should support RIL’s share price. The nation’s most valuable company beat Street estimates on the operating profit front, helped by the retail, oil-to-chemicals (O2C) and upstream segments in the third quarter. CLICK HERE FOR THE FULL REPORT
RIL’s long-term outlook and dominant position in each of its product and service portfolios provide comfort for long-term value creation. RIL’s consumer business will drive growth going forward. The company has a strong balance sheet after the fundraising, while its traditional business will continue to generate steady cash flow, ICICI Securities analysts said in the earnings update.
RJio should see the benefits of price increases increase over the next few quarters as we see a healthy improvement in ARPU. Additionally, as RJio’s growth slows, Jio Platforms Ltd (its holding company) is keen to replicate Wireless’ success in other business areas, with aggressive plans and product launches in place, Motilal said. Oswal Financial Services.
“We value Reliance Retail core business at 35x EV/EBITDA and attribute 4x to Connectivity, arriving at TP of Rs 1,100 – after excluding the recent sale of 10% stake. Our premium valuation multiples seize the opportunity of rapid expansion in retail and the aggressive rollout of digital businesses, including the JioMart platform,” the brokerage said, Buy reiterates, with an award. target of Rs 2,800/share.