Stocks in News 25 November - Reliance Industries and Coal India!

Stocks in News 25 November - Reliance Industries and Coal India!

This video is in Hindi and covers the following topics:

Today's stock is Reliance Industries as company has decided to implement a 'Scheme of Arrangement' to transfer the 'Gasification' undertaking into a wholly-owned subsidiary (WOS).

2nd Company in news is Coal India as company has said that it will be forced to hike prices of supplies in long-term deals to protect profitability

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The 'Gasification' project at Jamnagar was set up with the objective to produce syngas to meet the energy requirements

Reliance Industries Ltd's Board on Wednesday decided to implement a 'Scheme of Arrangement' to transfer the 'Gasification' undertaking into a wholly-owned subsidiary (WOS).

RIL progressively transitions to renewables as its primary source of energy, more 'syngas' will become available for upgradation to high value chemicals

 The nature of risk and returns associated with the gasifier assets will likely be distinct from those of the other businesses of the company.

This distinct business profile also provides the opportunity to potentially attract a different pool of investors and strategic partners for the gasification assets and new materials and chemicals projects

The appointed date of the scheme would be March 31, 2022 or "such other date as may be determined by the Board

In addition, the scheme will require approval of Stock Exchanges, Creditors, Shareholders, NCLT and other regulatory authorities.

Coal India Ltd., the world’s largest producer of the fuel, said rising costs mean it’s “inevitable” that it will be forced to hike prices of supplies in long-term deals to protect profitability

Coal India last raised prices in 2018.
The state-run company is facing pressure from high diesel prices and an increase in salaries of employees due retroactively from July

The Kolkata-based miner consumes almost 1.3 billion liters of diesel annually to run its operations.

The higher costs threaten to eat into investor returns and potentially hinder its investment in mines and logistics infrastructure.
Profit for the quarter ended September missed expectations, partly due to higher costs including a provision for the salary increase.
Coal India Ltd on Wednesday said the company is aiming at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years. Most of the incremental capex will go into coal production and evacuation

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