Reliance Bonus Share: Mukesh Ambani’s conglomerate to announce bonus issue, more significant announcements on anvil

Reliance Industries Limited (RIL), the oil-to-telecom conglomerate led by Mukesh Ambani, is set to make a significant announcement today. The company's board is expected to announce the issue of bonus shares at a 1:1 ratio, marking RIL's sixth bonus issue and the first since 2017.

RIL's stock has seen a substantial surge in recent years and is currently trading above the ₹3,000 mark. Since its last bonus issue in 2017, the company's share price has surged by an impressive 318%, rising from ₹725.65 on September 7, 2017, to ₹3,029.80 as of Wednesday.

RIL share price was trading red, down 0.15 per cent, at ₹3025.35 on September 5, at 11:31 am, on BSE.

RIL has a history of rewarding its shareholders with bonus issues. Previous bonus shares were offered in 2017 (1:1), 2009 (1:1 ratio), 1997 (1:1 ratio), 1983 (6:10 ratio), and 1980 (3:5 ratio). The company has also issued rights shares five times since its listing, though it has never implemented a stock split, according to a Business Today report.

In 2024, RIL's shares have outperformed the broader market, showing a 17% increase compared to the BSE Sensex's 14% rise. The stock reached its 52-week high of ₹3,217.90 on July 8.

Experts' analysis of RIL share price

Market analysts have varying opinions on RIL's prospects. Bernstein, in a recent note, stated, "Reliance Industries is more of an India theme where retail and telecom will drive growth while O2C consolidates." They raised their target for RIL to ₹3,440. Other major brokerages have set targets ranging from ₹3,300 to ₹3,530, as per a Business Today report.

However, some analysts maintain a cautious stance. ICICI Securities, despite acknowledging potential earnings growth, suggested a target of ₹2,970, citing "high multiples, muted free cash flow yields and return ratios." Antique Stock Broking remains neutral with a target price of ₹3,213,  BT reported.

From a technical perspective, JM Financial noted that the RIL stock "has been forming a pattern of higher top higher bottom, a bullish formation," following a decline from its 52-week high. They added, "The stock has started trading above all its key long-term and short-term EMAs, suggesting further strength to prevail."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.