Record-breaking Reliance share price: Reliance's Stock Achieves All-Time High, Market Value Surpasses ₹19 Trillion.
Record-breaking Reliance share price: Over the last month, Reliance shares have seen an impressive 9% increase, with a remarkable surge of over 24% in the past three months. Looking at a three-year span, the returns on Reliance shares stand at an impressive over 53%.
On Monday, the share price of Reliance Industries reached an unprecedented level, leading to the company's market capitalization surpassing ₹19 lakh crore. The surge in Reliance shares was notable, as it rose by 4.19% to reach a new high of ₹2,824.00 per share on the BSE.
Similarly, on the NSE, the price of Reliance shares experienced a significant increase of 4.35%, hitting a record high of ₹2,824.00 per share. This upward trend indicates a positive market response and heightened investor confidence in Reliance Industries.
Reliance Industries Limited (RIL) took the lead as the primary contributor to the Nifty 50 index, significantly impacting its gains. RIL shares played a substantial role by contributing almost 89 points to the Nifty 50, which was trading at 21,656.30, showing an increase of 303.70 points or 1.42%.
As Reliance Industries' market capitalization exceeded ₹19 lakh crore, it solidified its position as the most valued company in the Indian stock market. This achievement underscores the significant influence and prominence of RIL within the stock market.
In the last month alone, Reliance shares have shown a notable increase of almost 9%, and over a three-month period, the stock has surged by an impressive 24%. Looking at a three-year span, the returns on Reliance shares stand at a remarkable over 53%.
On January 19, Reliance Industries, led by billionaire Mukesh Ambani and known for its diverse ventures from energy to telecom, reported a year-on-year rise of 11% in net profit for the third quarter of the fiscal year 2024. The net profit for this period amounted to ₹19,641 crore. This financial performance further highlights the strong standing of Reliance Industries in various sectors.
In the third quarter of the fiscal year 2024, the company experienced a 3.2% year-on-year increase in gross revenue, reaching ₹2,48,160 crore. This growth was primarily attributed to the sustained expansion in consumer businesses. Notably, the retail and oil & gas segments played a significant role in driving the overall revenue, whereas the oil-to-chemicals (O2C) arm witnessed a decline in revenue due to lower price realization.
During the December quarter, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded a substantial 17% increase, totaling ₹44,678 crore. This noteworthy growth was propelled by the robust performance of the retail and oil & gas segments, underscoring their positive impact on the company's financial health.
Reliance Industries Limited (RIL) saw an 11% year-on-year increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Digital Services during the third quarter of FY24. This growth was driven by a 2% YoY rise in Average Revenue Per User (ARPU), reaching ₹181.7, coupled with a substantial 9% YoY increase in the customer base, now totaling 471 million.
In response to the Q3FY24 earnings report, Emkay Global Financial Services stated that Reliance's performance was largely in line with expectations. The EBITDA for the Oil-to-Chemicals (O2C) and Jio segments fell slightly short of estimates, but this was balanced by better results in the Upstream sector (due to lower operational expenses) and Retail, which met expectations.
Emkay Global Financial Services has maintained its earnings estimates for FY24-26 but has increased the Sum of the Parts (SOTP)-based Target Price (TP) by 8%, setting it at ₹2,950 per share. This adjustment is attributed to the growing value in new energy (1.5x EV/IC) as development progresses, a higher target for Jio's EV/EBITDA, and a rollover to Dec-24E. The brokerage continues to recommend an 'Add' rating for Reliance Industries.
Previously, Nuvama Institutional Equities expressed optimism about Reliance Industries making significant strides in initiating New Energy-chain production through strategic mergers & acquisitions (M&A), PLI wins, and advancements in plant development.
Recognizing Reliance's fully backward-integrated 20GW module capacity, the brokerage suggested that a re-evaluation of the company's New Energy business was warranted.
In response to these positive developments, Nuvama Institutional Equities increased its target price for Reliance Industries shares by 5%, setting it at ₹3,105 per share. This adjustment was made by projecting RIL’s New Energy valuation to FY26E sales. The brokerage maintained a 'Buy' rating for RIL shares.
As of 12:00 pm, Reliance shares exhibited a 4.11% increase, trading at ₹2,821.85 each on the BSE, and the company's market capitalization stood at ₹19.08 lakh crore. These numbers underscore the market's positive response to the company's advancements in the New Energy sector and strategic initiatives.
Comments