New growth opportunities, high debt risk: How analysts interpret RIL's AGM

Analysts said that though the company is set to embark the journey of new growth opportunities in telecom, and new energy areas, it may lead to increase in near-term debt, and weaken the return ratios

Future growth strategies spelt out by Reliance Industries' chairman Mukesh Ambani at the company’s 45th Annual General Meeting (AGM), will help the company embark the journey of decadal growth opportunities in telecom, and new energy areas, analysts said. The required capital expenditure, however, may lead to increased debt in the near-term, and weak return ratios.

"Recent transactions to purchase technology, as well as investment plans for new energy, should kick-start another engine of growth, but will likely require investment in the interim. Besides, while e-commerce is gaining momentum, it is yet to achieve meaningful scale. Thus, the burden of revenue