Reliance Becomes Second Company in India to Hit US$ 100 billion Club

0
Advertisement

On April 23, 2018, TCS became the first company in India to hit the US$ 100 billion club after its market capitalisation became Rs 7.5 trillion

Reliance stock, Reliance AGM, , Reliance Industries, , Reliance Group, Mukesh Ambani, Reliance 100 million, Reliance TCS
Image courtesy: Wikipedia

Mukesh Ambani led Reliance Industries (RIL) has made a long return to the US$ 100 billion club of market capitalisation after the company hit this benchmark at Bombay Stock Exchange (BSE) on Thursday. RIL has hit this mark after 2007 and is currently only the second Indian company to cross this feat.

Until now in 2019, RIL stock has increased by 17.5 per cent

On Thursday, Reliance’s shares closed at Rs 1,082.20 – an increase of 4.4 per cent, after gaining 6 per cent to the highest of the day of Rs 1,098.80. Following the end of the day, RIL stood valued at US$ 100.03 billion or Rs 6.85 trillion. RIL stock has seen a rise of 17.5 per cent so far in 2019, beating benchmark Sensex index that climbed 7.3 per cent in the same duration of time in 2019.

Deepak Jasani, head of retail research, HDFC Securities said: “Investors seemed to be enthused by the vision pronounced by the chairman at the annual general meeting (AGM) of a strategic move to a technology platform company with three key verticals of mobile connectivity, fibre connectivity and new commerce platform for the retail business, even as the traditional businesses of energy and petrochemicals continue to perform quite well. This may result in scaling up consumer profits at parity level to energy and petrochemicals business over the next decade.”

He said that cheap relative value based on the ratio of price to earnings (P/E ratio) also tempted investors to look at the stock with a fresh pair of eyes especially when P/E ratios of other stocks have spiked prominently over the past few months.

India’s biggest software services exporter – Tata Consultancy Services (TCS) Ltd became the first company in the country to hit the US$ 100 billion club after it crossed the benchmark on April 23 this year with a total market capitalisation of Rs 7.5 trillion.

Reliance to double its sales in about seven years

At the 41st annual general meeting (AGM) of Reliance Industries (RIL), the company unveiled its fibre broadband system Jio GigaFibre that claims to provide an Internet speed of 1Gbps and through registrations, will offer the service to more than 1,100 Indian cities and towns.  Ambani had also announced that RIL eyes to increase its sales by two-fold in about seven years although the company is currently in the process of exploring various ways to enhance the profitability of its mainstay refinery and chemicals businesses. Besides these, RIL is also looking to grow in new consumer businesses. Through its Rs 2.5 trillion worth a company – Reliance Jio Infocomm Ltd, RIL plans to break into e-commerce, education, agriculture and healthcare in the coming two years. “As India starts on its high-growth journey to double the size of its economy by 2025, I assure you that the size of Reliance will more than double in the same period.,” Ambani told shareholders at the AGM.

LEAVE A REPLY

Please enter your comment!
Please enter your name here