Mukesh Ambani-led Reliance Industries is now the first Indian stock to cross Rs 20 lakh crore market cap – Times of India

by The Technical Blogs

RIL share price today: Reliance Industries (RIL), led by Mukesh Ambani, has become the first Indian listed company to surpass a market capitalization of Rs 20 lakh crore. The stock of RIL rose by 1.89% to reach a fresh 52-week high of Rs 2957.80 on the Bombay Stock Exchange (BSE).
In the past two weeks alone, the market value of RIL has increased by Rs 1 lakh crore.It reached the Rs 19 lakh crore mark on January 29. So far this year, the share price of RIL, which is the most valued stock in India, has increased by approximately 14%, states an ET report.
This Mumbai-based conglomerate, which operates in the oil-to-telecom sector, has been a significant creator of wealth in the Indian stock market. RIL achieved a market capitalization of Rs 1 lakh crore in August 2005, and it reached Rs 10 lakh crore in November 2019.
With a market capitalization of Rs 20 lakh crore, RIL remains the most valued company in India, far ahead of other companies like TCS (Rs 15 lakh crore), HDFC Bank (Rs 10.5 lakh crore), ICICI Bank (Rs 7 lakh crore), and Infosys (Rs 7 lakh crore).
Also Read | Top wealth creating stocks in India: Reliance tops biggest wealth creator list; Adani Enterprises bags first spot as all-round stock
RIL’s financial results for the December quarter were in line with market expectations. The company’s O2C EBITDA dropped by 14% QoQ to Rs 140.6 billion due to maintenance activities and lower cracks & deltas. However, Jio’s EBITDA increased by 1.4% QoQ to Rs 142.6 billion, and Retail EBITDA rose by 8% QoQ to Rs 62.7 billion.
In Q3FY24, RIL’s profit after tax stood at Rs 19,641 crore, a decrease of 1.2% QoQ but an increase of 10.3% YoY. This exceeded market expectations of Rs 18,080 crore. The PAT margin was 8.7% compared to 8.6% in the previous quarter.
Morgan Stanley sees this earnings report as a positive turning point for RIL’s investment cycle and energy profitability. The brokerage has given a target price of Rs 2,821. Analysts expect 2024 to be a significant year for RIL as past investments move into the monetization phase.
Jefferies forecasts 12% EBITDA growth in FY25, with Jio contributing the majority, driven by a tariff hike. Sharekhan maintains a Buy rating on RIL, citing strong prospects across different business segments and potential value unlocking from retail, digital services, and financial services portfolio.
On the other hand, Citi has downgraded RIL to neutral, stating that the risk-to-reward ratio is fairly balanced. The brokerage has a target price of Rs 2910.

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