Reliance Industries becomes the first Indian company to reach a valuation of 19 trillion dollars.
Reliance Industries Ltd (RIL), owned by Mukesh Ambani, became the first Indian listed company to reach a market capitalization of Rs. 19 trillion (US$ 250 billion).
The RIL scrip has risen by 29%, a huge increase when compared to the broader market NSE Nifty, which has only risen by 6%.
Reliance Industries Ltd. is the first company in India to reach a market capitalization of $250 billion. In the last four months, the market capitalization gap between two of India’s most valuable companies (Reliance and TCS) has widened even more. In 2022, Reliance Industries’ market cap increased by $20 billion, while TCS’ market cap decreased by $20 billion.
RIL’s market capitalization has now surpassed that of Tata Consultancy Services, a major IT firm (TCS). PepsiCo, Alibaba, Walt Disney, Novartis, and Merck are all more valuable than the energy-to-telecom conglomerate on a global scale. The Tata Group is a conglomerate of Indian companies. The RIL scrip has risen by 29%, a huge increase when compared to the broader market NSE Nifty, which has only risen by 6%. Nifty has gained around 1000 points, or 40%, thanks to Reliance.
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Reliance contributes 12% to Nifty’s market capitalization and accounts for nearly 10% of the index’s earnings. “Reliance, which contributes 12% to Nifty’s market cap weight and accounts for 10% of the index’s earnings,” according to a CLSA research report. Given that energy accounts for 60% of Reliance’s FY23 earnings but only 27% of our SOTP, commodity producers’ earnings would account for 22% of Nifty’s earnings despite these stocks commanding only a 9% share of the free float market cap based weight.”
“Reliance Industries is firing on all cylinders because its petchem business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore GRM is at an all-time high,” said Santosh Meena, Head of Research, Swastika Investment Ltd. on Reliance Industries. Its telecom business is unaffected by geopolitical tensions or inflation, while its retail business is looking for synergies. It is constantly expanding its path in the renewable energy business, which provides the company with new opportunities.”
“RIL created a strong base at the 2250 mark, then saw a smart rally where it broke out of a falling channel formation, leading to fresh bullish momentum,” according to the technical analysis. On the plus side, it has the potential to reach 3000 points. On the downside, Meena explained, “2500 should act as an immediate and strong support level.”
RIL is a well-diversified business entity with a presence in refining or marketing petrochemicals (O2C), oil and gas exploration, retail, digital services, and media, making it one of India’s largest conglomerates. O2C and oil and gas contributed 50% of EBITDA in the 9MFY22 period, whereas retail, digital, and others contributed 10%, 34%, and 6%, respectively.
Reliance Industries Ltd. shares were trading at Rs 2,834.20, or 2.03 percent higher, at 12:25 p.m. on Thursday, April 28th, 2022.
