30 Jun , 2021 By : Kanchan Joshi
Reliance ADNOC deal: Reliance Industries on yesterday announced an strategic partnership with ADNOC (Abu Dhabi National Oil Company), which is another step after the appointment of Saudi Aramco's Al-Rumayyan on the RIL's board, to globalise its operations. According to market experts, this announcement will have positive impact on the company's shares in long-term as it is expected to work as 'value accretive' for Mukesh Ambani's company.
Highlighting upon the Reliance ADNOC deal Arijit Malakar, Head of Research at Ashika Stock Broking said, "Reliance industries strategic partnership with ADNOC for setting up of chemical projects in Abu Dhabi is significant step in globalizing Reliance's operations. The project will manufacture ethylene dichloride, a key building block for production of PVC in India. The market for chemicals like chlor alkali, ethylene dichloride & PVC is expected to witness stable growth on the back of growing demand from Asia and Africa. Thus, this partnership will be value accretive for Reliance Industries from long term perspective."
Calling this Reliance ADNOC deal a positive move after the appointment of Saudi Aramco's Al-Rumayyan on the company's board Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Reliance's Saudi Aramco move is expected to give long-term returns as Saudi Aramco would buy 15 to 25 per cent stake in the Reliance's oil venture. In that case, it will attract around Rs1.25 lakh crore to Rs1.50 lakh crore. Since, Reliance Industries is a debt-free company, it would either go for investment or announce dividend to its share holders. As the company's investment cycle is almost over, one can expect dividend for share holders."
On short-term impact of Reliance ADNOC deal on RIL share price Rohit Singre, Senior Technical Research Analyst at LKP Securities said, "One can buy Reliance Industries shares in the range of Rs2035 to Rs2070 for immediate targets of Rs2200 and Rs2280." However, he advised strict stop loss at Rs2000.
Predicting long-term impact of Saudi Aramco and ADNOC deal Ravi Singhal, Vice Chairman at GCL Securities said, "One can take positional call in Reliance Industries shares at current market price for 6-9 month target of Rs3000. However, for this positional call, one will have to maintain strict stop loss at Rs1950 mark."
Reliance share price today has opened on the positive note adding 0.37 per cent in its Tuesday closing.
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