Mukesh-Ambani led Reliance Industries has become the most valuable Indian company with its market capitalisation crossing Rs 9 trillion. Ahead of its quarterly results, the shares of the company rose by 1.92% to Rs 1,423. RIL is the first Indian company whose market capitalisation has cross nine trillion rupees.
Reliance Industries is followed by IT major TCS, which has a market capitalisation of Rs 7.67 lakh crore.
Market Capitalization is the value of a company being traded on the stock market. It is calculated by multiplying the total number of shares with the current share price of the company.
According to a Mint report, RIL’s shares have grown nearly 26% since January.
“It is a matter of great pride for me that, since Reliance’s IPO in 1977, our shareholders’ money has doubled every two and a half years, for the last 40 years,” Mukesh Ambani was quoted as saying at the Financial Times ArcelorMittal Boldness in Business Awards in March 2018.
Recently, a report by Axis Capital said that RIL is set to hit a market cap of $220 billion by FY24, which implies a 17% stock return CAGR over 4 years.
A massive reduction in net debt, growth in its crude business, rising contribution from enterprise solutions and broadband in Reliance Jio and scale acceleration to improve profitability in Retail will drive growth, the report said.
With RIL set to announce its September quarter results, analysts are expecting the company to report strong earnings as Reliance’s margins have recovered.
Ten of the 14 analysts polled by Bloomberg expect RIL’s consolidated net profit to be Rs 11,256 crore.
Reliance recently rolled out its broadband service under Jio and this Diwali, it is also expected to announce its new commerce venture.
Anticipation of some announcement around the new commerce venture could have also led to the stock rising.