Reliance Industries’ Market Capitalization Exceeds ₹21 Lakh Crore

A Market Historical Achievement

Reliance Industries Ltd (RIL) became the first Indian business to attain a market value of ₹21 lakh crore. RIL’s shares reached a record high of ₹3,129 during early trade, a result of a 20% increase in stock price this year.

Reasons for the Rise

Reliance Jio’s pricing hikes have boosted RIL’s stock performance. New rates offer unlimited 5G data for plans of 2 GB per day and above, starting at ₹189 for 2 GB per month and ₹3,599 for an annual plan with 2.5 GB per day. Market sentiment and sales growth have improved due to this strategy.

Market Results and Forecasts

Jefferies upped its price objective for RIL from ₹3,380 to ₹3,580, forecasting a 17% increase from the previous close. Jefferies rates RIL ‘Buy’ and expects Jio’s revenue and profit to grow 18% and 26% annually from FY24 to FY27.

Similarly, Morgan Stanley maintains a ‘Overweight’ rating with a ₹3,046 target price. The company expects the recent tariff hikes to meet market expectations and produce fresh energy cash flow by year’s end. While no tariff hikes are planned until FY27, Morgan Stanley predicted a 20% raise next year might enhance earnings by 10-15%.

Positive Industry Impact

Kotak Securities expects Bharti and Vi to follow the pricing rise. With a target price of ₹3,300 for RIL, they anticipate a 10-12% CAGR in industry ARPU reaching ₹300 in the next 3-4 years. Jio needs this growth to justify its 5G investments and IPO.

Analyst Consensus

Of the 35 analysts covering Reliance, 28 recommend ‘Buy,’ five ‘Hold,’ and two ‘Sell.’ This consensus shows market confidence in RIL’s strategy and growth prospects.

Broader Market Context

Indian equities indexes, including Sensex and Nifty, achieved record highs with RIL’s stock jump. In just four trading sessions, Reliance has increased its market capitalization by approximately ₹1,33,000 crore.

Professional Advice

Basav Capital founder Sandeep Pandey said, “India’s robust economic growth is expected to benefit leading Indian companies, including Reliance Industries. The textile, petrochemical, telecom, and retail industries should do well in the next quarters. The market expects a stock rise after the Union Budget 2024.”

Conclusion

Reliance Industries’ market value surpassing ₹21 lakh crore highlights its dominance in the Indian economy. Investor confidence and market performance have increased due to the company’s telecom strategy. With its expansion and innovation, Reliance is poised to maintain its leadership and develop significantly.