RIL repositioning as consumer, tech co may push up stock price: J P Morgan

The core energy business of Reliance Industries Limited (RIL) could be staring at a multi-year slump, but “repositioning as a consumer/technology company” should continue to support stock price, according to US brokerage, JP Morgan.

After the Facebook (FB) and Silver Lake stake sale in Jio Platforms (JPL), RIL has announced a deal to sell a 2.23 per cent stake in Jio Platforms (JPL) to Vista Partners for US $ 1.5 billion. This takes the total equity flow into JPL to $ 7.95 billion for a total equity sale of 13.45 per cent.

“We expect the news flow and expectations of ‘similar sized deals’ to continue to drive near-term stock outperformance as it allows investors to look through near-term earnings weakness”, JP Morgan said in a research.