Reliance Industries : A Dive into Recent Developments and Financial Performance
Reliance Industries Limited (RIL), led by billionaire Mukesh Ambani, continues to be a powerhouse in the Indian business landscape, with recent milestones propelling its market dominance. In this article, we delve into the latest updates and financial performance of Reliance Industries, exploring the factors contributing to its record-breaking share prices and market capitalization.
Record-Breaking Share Prices
As of the latest data, Reliance Industries has witnessed a remarkable surge in its share prices, hitting record highs. On the BSE (Bombay Stock Exchange), the share price rallied as much as 4.19% to reach an all-time high of ₹2,824.00 apiece. This surge has not only marked a historic milestone for the company but has also contributed significantly to the broader market indices.
Market Capitalization Crosses ₹19 Lakh Crore
The market capitalization of Reliance Industries has crossed the ₹19 lakh crore mark, solidifying its position as the most valued company in the Indian stock market. This achievement underscores the company’s robust performance and the confidence of investors in its business strategies and growth prospects.
Impressive Stock Performance
Reliance shares have demonstrated impressive gains over various timeframes. In the past one month alone, the shares have surged nearly 9%, reflecting positive market sentiment and investor confidence. Looking at a three-month horizon, the stock has witnessed a remarkable growth of over 24%, showcasing sustained momentum. Furthermore, the three-year returns on Reliance shares are reported to be over 53%, emphasizing the company’s consistent track record of delivering value to shareholders.
Financial Highlights for Q3 FY24
On January 19, Reliance Industries reported its financial results for the third quarter of FY24. The company recorded an 11% year-on-year (YoY) rise in net profit, reaching ₹19,641 crore. The gross revenue for Q3FY24 increased by 3.2% YoY to ₹2,48,160 crore, with consumer businesses playing a pivotal role in driving this growth. However, the oil-to-chemicals (O2C) arm experienced a decline in revenue due to lower price realization.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose by an impressive 17% to ₹44,678 crore. This growth was primarily attributed to the retail and oil & gas segments, showcasing the diversified nature of Reliance Industries’ business portfolio.
Jio’s Contribution to Earnings
Reliance Jio, the telecommunications arm of Reliance Industries, has been a significant contributor to the company’s overall earnings. In the reported quarter, Jio’s EBITDA witnessed an 11% YoY increase. The average revenue per user (ARPU) for Jio grew by 2% YoY to ₹181.7, accompanied by a substantial 9% YoY rise in the customer base, reaching 471 million.
Analyst Perspectives
Analysts have been closely monitoring Reliance Industries’ performance and its impact on the market. Emkay Global Financial Services noted, “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.”
Positive Projections and Valuation Re-Rating
Nuvama Institutional Equities expressed optimism regarding Reliance Industries’ future growth, particularly in the New Energy business. The brokerage suggested a valuation re-rating for this segment, considering the company’s fully backward-integrated 20GW module capacity and strategic moves, including mergers & acquisitions, PLI-wins, and plant progress.
As a result of this positive outlook, Nuvama Institutional Equities raised its target price on Reliance Industries shares by 5% to ₹3,105 per share. This adjustment was based on rolling forward RIL’s New Energy valuation to FY26E sales. The brokerage maintains a ‘Buy’ rating on the RIL shares, further emphasizing confidence in the company’s potential.
Conclusion : Reliance Industries
Reliance Industries continues to be a juggernaut in the Indian business landscape, breaking records and setting new benchmarks. The recent surge in share prices, coupled with a robust financial performance, highlights the company’s resilience and adaptability in a dynamic market. With strategic moves in the New Energy sector and a diversified business portfolio, Reliance Industries seems poised for sustained growth, leaving investors and analysts alike optimistic about its future prospects. As the company navigates the evolving economic landscape, stakeholders will be keenly watching for further developments and milestones in the journey of Reliance Industries Limited.
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