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

Reliance Industries share price hit a record high on Monday with its market capitalisation crossing ₹19 lakh crore. Reliance shares rallied as much as 4.19% to a fresh high of ₹2,824.00 apiece on the BSE.

On NSE, Reliance share price jumped 4.35% to a record high of ₹2,824.00 apiece.

RIL stock was the top contributor on the Nifty 50 index. RIL shares contributed nearly 89 points to Nifty 50's gains. The Nifty 50 index was trading 303.70 points, or 1.42%, higher at 21,656.30.

With its market capitalisation crossing ₹19 lakh crore, Reliance Industries is the most valued company in the Indian stock market.

Also Read: How Reliance Might Devalue 'Disney+Hotstar' Post Zee-Sony Fallout | MINT Explains

Reliance shares have gained nearly 9% in the past one month, while the stock has surged more than 24% in three months. Three-year returns on Reliance shares come at over 53%.

On January 19, the billionaire Mukesh Ambani-led energy-to-telecom conglomerate Reliance Industries (RIL) reported an 11% year-on-year (YoY) rise in net profit at ₹19,641 crore for the third quarter of FY24.

The company’s gross revenue in Q3FY24 increased 3.2% YoY to ₹2,48,160 crore led by continued growth momentum in consumer businesses. The revenue was largely led by retail, oil & gas segments, while the oil-to-chemicals (O2C) arm’s revenue declined on account of lower price realisation.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 17% to ₹44,678 crore, driven by retail and oil & gas segment.

Read here: Reliance Q3 Results Highlights: Net profit up 11% to ₹19,641 crore; O2C revenue down, retail, telecom arms thrive

RIL’s EBITDA for Digital Services rose 11% YoY, as average revenue per user (ARPU) grew 2% YoY to ₹181.7, in addition to a 9% YoY rise in customer base to 471 million.

“Reliance reported largely in-line earnings during the third quarter of FY24. O2C and Jio EBITDA, both saw a slight miss on our estimate which was albeit offset by better Upstream (due to lower opex) and in-line Retail,” said Emkay Global Financial Services.

It broadly maintained FY24-26E earnings estimates, but raise SOTP-based TP by 8% to ₹2,950 per share, on the back of higher new energy value (1.5x EV/IC) as development progresses, higher Jio EV/EBITDA target, and rollover to Dec-24E. The brokerage maintained an ‘Add’ rating on Reliance Industries.

Also Read: Reliance Industries to see valuation re-rating led by New Energy business, says Nuvama Equities; raises target price

Earlier, Nuvama Institutional Equities had said Reliance was sprinting towards commencing New Energy-chain production and with its strategic mergers & acquisitions (M&A), PLI-wins and plant progress. Thus, given its fully backward integrated 20GW module capacity, Reliance Industries needs a valuation re-rating for its New Energy business.

The brokerage raised its target price on Reliance Industries shares by 5% to ₹3,105 per share by rolling forward RIL’s New Energy valuation to FY26E sales. It has a ‘Buy’ rating on the RIL shares.

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

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