On Tuesday, the conglomerate’s shares surged by 1.2 percent, trading at Rs 2,940.20 each on the NSE during the writing of this story. This significant market capitalization underscores Reliance Industries’ stature and ongoing positive market performance.
Reliance Industries market capitalization (m-cap): Mukesh Ambani’s Reliance Industries has reached a new milestone, becoming the first Indian company to cross Rs 20 lakh crore market valuation.
On Tuesday, shares of the oil-to-telecom giant surged by over 1.2 percent, trading at Rs 2,940.20 apiece on the NSE at the time of writing this story.
Intraday, the stock hit a 52-week high of Rs 2,958 apiece on the NSE.
In 2024 so far, Reliance Industries (RIL) shares have advanced about 14 percent. Shares rose over 10 percent in January 2024 and have gone up by 4 percent in the ongoing month so far.
Timeline of RIL valuation surpassing various milestones:
The petroleum giant reached Rs 1 lakh crore in August 2005, Rs 2 lakh crore in April 2007, Rs 3 lakh crore in September 2007, and Rs 4 lakh crore in October 2007. After a mega rally in 2007, the stock took a beating in 2008 during the global equity market meltdown in the wake of the Lehman Brothers crisis in the US.
It took Reliance Industries about 12 years to take its valuation beyond Rs 5 lakh in 2017. Thereafter, its valuation doubled within 2 years to cross the Rs 10 lakh crore mark in November 2019.The m-cap went past the Rs 15 lakh crore level in September 2021.
The recent rally in Relience stock can be attributed to several positive reports on the company by brokerages.
Bernstein brokerage foresees a strong 20 percent Compound Annual Growth Rate (CAGR) in EPS growth until the conclusion of FY26, propelled by the retail and telecom sectors. Following the 5G rollout, the telecom emphasis is expected to transition towards monetization, with an anticipated 15 percent CAGR revenue growth for Jio in the upcoming three years.
io is anticipated to capture a 47 percent market share by FY25, driven by a substantial base of 500 million subscribers and an estimated 11 percent tariff increase in FY25. The retail sector is experiencing robust growth, with a noteworthy 24 percent year-on-year surge, sustained by both store expansion and increased e-commerce activities. While the company’s oil-to-chemical earnings may remain steady due to stagnant volume growth and marginal improvements in chemicals, E&P volumes are expected to peak in the next 12 months. Future growth in this segment will be fueled by expansions in solar and battery capacity, as highlighted in the Bernstein report.
Analysts suggest that investors can anticipate key catalysts, including potential spin-offs post-India election, higher telecom tariff rates, announcements in the new energy sector, and improved free cash flow following the 5G infrastructure build-out.
