Mukesh Ambani-led Reliance Industries ruled higher today ahead of the 41st Annual General Meeting (AGM) of shareholders of the company.
The AGM will kick off around 11 am at Birla Matushri Sabhagar in Mumbai.
The scrip was up 1 per cent at Rs 999.75 at around 9.45 am. The BSE Sensex went up 11 points at 35,656 at around the same time.
Chairman and Managing Director Mukesh Ambani is expected to announce the commercial launch of JioFiber FTTH broadband services. India’s richest man may also talk about the company's recent acquisitions, e-commerce plans, Reliance Jio's rising market share, potential in the digital content and also the core oil and gas business.
Analysts noted that Fibre to the Home (FTTH) services have been in the Beta phase for some time now. The launch may not be pan-India, but in select relevant markets, they said.
The company estimates the potential FTTH market size at 90 million home subscribers, Motilal Oswal Securities said in a recent note. The management plans to shift capex focus towards fibre, which will be used to expand both FTTH as well as enterprise data offerings in the market, it noted.
The continuation of the growth trend in Reliance Retail and clear e-commerce plans would drive a re-rating in shares of Reliance Industries, said Hong Kong-headquartered firm CLSA.
Reliance Retail revenues’ more than doubled in FY18 with core retail revenues growing 37 per cent year-on-year in FY18. It reported 134 per cent growth in revenue in the fourth quarter of 2017-18.
CLSA, which has a ‘buy’ rating on Reliance Industries with a target price of Rs 1,230, said a clear e-commerce strategy, perhaps in the upcoming annual general meeting -- which may include leveraging Jio’s customer base -- could drive a strong re-rating even beyond offline peer valuations.