Reliance share price hits record high, market cap crosses Rs 19 lakh crore

Digital Desk: Reliance Industries' market value on Monday crossed Rs 19 lakh crore, setting a record high for the company's share price. On the BSE, Reliance shares increased by as much as 4.19% to reach a new high of Rs2,824.00 a share.

Reliance's share price surged by 4.35% on the NSE to a new high of Rs 2,824.00 per share.

The largest contributor to the Nifty 50 index was the RIL stock. The advances in the Nifty 50 were over 89 points attributed to RIL shares. At 21,656.30, the Nifty 50 index was up 303.70 points, or 1.42%.

Reliance Industries has the highest market capitalization in the Indian stock market, surpassing Rs.19 lakh crore.

In the last month, Reliance shares have increased by about 9%, and over the last three months, the stock has increased by more than 24%. Reliance shares yield almost 53% in three years.

Reliance Industries (RIL), an energy-to-telecom conglomerate led by billionaire Mukesh Ambani, announced an 11% YoY increase in net profit for the third quarter of FY24, coming in at Rs19,641 crore.

The company's consumer business growth momentum drove a 3.2% YoY increase in gross revenue to Rs 2,48,160 crore in Q3FY24. The retail and oil and gas divisions drove the majority of the revenue, with the oil-to-chemicals (O2C) arm experiencing a fall in revenue due to reduced price realization.

The retail and oil and gas segments drove the company's 17% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to Rs 44,678 crore in the December quarter.

 

With a 9% YoY increase in its customer base to 471 million and a 2% YoY increase in average revenue per user (ARPU) to Rs 181.7, RIL's EBITDA for Digital Services increased 11% YoY.

"For the third quarter of FY24, Reliance reported results that were essentially in line. While improved Upstream (because of lower opex) and in-line Retail helped to offset O2C and Jio EBITDA's little shortfall on our expectation, Emkay Global Financial Services stated.

It raised SOTP-based TP by 8% to Rs 2,950 per share, on the strength of greater new energy value (1.5x EV/IC) as development moves forward, higher Jio EV/EBITDA objective, and rollover to Dec-24E. It mostly maintained FY24-26E profit expectations. The firm kept its Reliance Industries rating at "Add."

Prior to this, Reliance was reportedly sprinting toward starting New Energy-chain production with its strategic M&A, PLI victories, and facility advancement, according to Nuvama Institutional Equities. Reliance Industries' 20GW completely backward integrated module capacity means that its New Energy division needs a re-rating in terms of valuation.

The brokerage carried forward RIL's New Energy value to FY26E revenues, increasing its target price for Reliance Industries shares by 5% to Rs 3,105 per share. On the RIL shares, a "Buy" rating is present.

With a market valuation of Rs 19.08 lakh crore, Reliance shares were trading 4.11% higher at ₹2,821.85 apiece on the BSE at 12:00 pm.