Reliance Industries Ltd (RIL) has become the first listed firm to surpass the monumental Rs 20 lakh crore market capitalization milestone in a remarkable feat. The oil-to-telecom conglomerate, led by Chairman Mukesh Ambani, saw its shares surge nearly 2 percent in Tuesday’s trade, propelling its market cap to Rs 19,93,881.61 crore.
This significant achievement underscores RIL’s dominance in the Indian business landscape and highlights its strategic evolution beyond traditional sectors. Meanwhile, NIFTY50 went past the 21750 in the early hours of Tuesday following RIL’s stock surge.
Shares of #MukeshAmbani-led #RelianceIndustriesLimited (#RIL) climbed nearly 2% in Tuesday's trade and, in the process, the oil-to-telecom major became the first ever listed firm to cross the Rs 20 lakh crore market capitalisation milestonehttps://t.co/wFyEdmYAU5
— Business Today (@business_today) February 13, 2024
RIL’s Market Cap Surge
RIL’s market capitalization surge is fueled by factors including robust performance across its diversified business segments. Over the past decade, RIL has transformed remarkably, shifting from a legacy oil & gas business to an industry leader in digital services and retail.
The recent demerger of its financial services arm, now known as Jio Financial Services Ltd (JFS), has also contributed to RIL’s market cap surge. Despite the challenges posed by the pandemic, RIL has continued to innovate and invest in future-oriented businesses, positioning itself as a frontrunner in India’s rapidly evolving market landscape.
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BNP Paribas Outlook on the Future of Reliance Industries
According to BNP Paribas, RIL is well-positioned to capitalize on emerging opportunities in India’s telecom and retail sectors. The brokerage firm values RIL’s telecom business at 11 times FY26 EV/Ebitda, citing Jio’s substantial infrastructure investments and expansive digital ecosystem.
#RIL market cap hits Rs 20 lakh crore for the first time. #NDTVProfitStocks
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— NDTV Profit (@NDTVProfitIndia) February 13, 2024
Similarly, Reliance Retail is valued at 35 times FY26E EV/Ebitda, reflecting its growth potential and market positioning. Additionally, the oil-to-chemicals (O2C) division is valued at a premium due to its strong refining margins and private ownership, further bolstering RIL’s market cap trajectory.
“We think RIL is well positioned to benefit from rising data demand in India and a likely increase in tariffs. Its retail business continues to see rapid store-space expansion. The upstream O&G business had a significant turnaround, with the start of new production from KG-D6 gas fields and improvements in realisation. We think RIL’s new green-energy businesses (solar, batteries, fuel cells and hydrogen) look promising, though we await more visibility,” the report said.
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