Reliance Industries Ltd. becomes the first Indian co to hit a market cap of $250 billion. The market cap gap between two of India’s most valued Indian companies (Reliance, TCS), widened further in the last four months. Reliance Industries saw an increase of ~$20 billion while TCS saw a decline of ~$20 billion in its market cap in 2022. RIL’s market cap is now double than that of IT major Tata Consultancy Services (TCS). The energy-to-telecom conglomerate is globally more valuable than PepsiCo, Alibaba, Walt Disney, Novartis, and Merck. Tata Group. The RIL scrip has seen a jump of 29 per cent, which is a massive gain against that the broader market NSE Nifty has seen of just 6 per cent. Reliance has added around 1000 points or 40 per cent to Nifty’s upside.
RIL: The Heavyweight in Nifty
Reliance contributes 12 per cent to Nifty’s market cap weight and makes up for nearly 10 per cent of the earnings of the index. As per a CLSA reserch report, “Reliance which contributes 12 per cent to Nifty’s market cap weight and makes up 10 per cent of the earnings of the index. Taking into account the fact energy makes up 60 percent of FY23 earnings for Reliance but contributes only 27 per cent to our SOTP, it would take-up the earning contribution of commodity producers to 22 per cent of Nifty’s earnings against these stocks commanding only a 9 per cent share of the free float market cap based weight.”
RIL Shares Scale New Highs
Santosh Meena, Head of Research, Swastika Investmart Ltd. on Reliance Industries, said: “Reliance industries is firing on all cylinders because its petchem business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore GRM is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company.”
On the technical front, “RIL created a strong base at the 2250 mark then witnessed a smart rally where it has broken out of falling channel formation which is leading to fresh bullish momentum. On the upside, it has the potential to move towards the 3000 mark. On the downside, 2500 should act as an immediate and strong support level,” Meena explained.
RIL is one of India’s biggest conglomerates with a presence in refining or marketing petrochemicals (O2C), oil and gas exploration, retail, digital services and media, making it a well-diversified business entity. In the April-December period (9MFY22), O2C and oil and gas contributed 50 per cent to the EBITDA level whereas retail, digital, and others contributed 10 per cent, 34 per cent, and 6 per cent, respectively.
At 12:25 pm, Reliance Industries Ltd. Shares were trading at Rs 2,834.20 or 2.03 per cent higher on Thursday.
Read all the Latest Business News here
Comments
0 comment