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GoodWill  Eagle’s Eyes !

We have indicated two things  in our earlier stories last week that the ‘worst is behind us’ and the market has picked up acceleration in the positive trajectory and moving upwards steadily. Today’s pace in the market bull run is a testimony. Secondly we have said that the “Reliance with Jio- is a Goldmine in making’-Both these are seen today a ground reality.

In his first ever virtual- digital AGM yesterday held in Mumbai Mr Mukesh Ambani has disclosed very valuable points and at the same time candidly admitting a few challenges which did not go well as predicted.

The big deal of Saudi Aramco (SA)- $ 15 Billion, taking 20 % stake in Reliance’s oil- to Chemical business is in a rough path over valuation issues as the energy sector has been one of the worst affected one due to Covid ‘ 19. SA – the world’s top oil exporter, wants RIL to review its price for the oil- to Chemical business as the global valuation of oil assets has tumbled miserably due to abnormal fall in demand for crude. RIL , operator of the world’s biggest refining complex has admitted that the Aramco deal has not materialized as per plan (should have been completed by March 2020) and agreement due to difference in views arising on account of the demand fall due to Covid 19.

Interestingly overseas companies vied with one another to invest in RIL, first SA, followed by Facebook, Intel, Qualcomm, Google…on Jio platforms have really helped the Indian Reliance company to emerge as a debt-free company.

So RIL is in a mood to spin-off its oil to chemical business into a separate subsidiary b applying to the Regulators so as to accommodate Aramco as the Equity needs of RIL has already been met. Mukesh also hinted that many overseas companies are approaching RIl for potential and strategic partnerships in its petro-chemical biz. including in utilizing pet chem feed stocks.

“These potential partnerships will help us build competitive manufacturing capacity at our existing sites to serve the deficit Indian market that still depends on large- scale imports of chemicals” he said.

So we reiterate that RIL- which has made Mukesh Ambani as one of top richest billionaires in the world, is a script worth possessing for substantial gain over the years to come.

So let us focus on value-investing to get the best out of the share markets!

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