RIL Flying High! Reliance Climbs 6% After Steady Q4, M-Cap Jumps Rs 1 Lakh Crore: BUY This Mukesh Ambani Stock

Reliance Industries Share Price: The Mukesh Ambani-backed Reliance Industries (RIL) share price has skyrocketed by nearly 6% on BSE, to reach around Rs 1,375 apiece mark. Furthermore, the largest company in India recorded more than Rs 1 lakh crore jump in market valuation, taking its total m-cap to near Rs 18.49 lakh crore. Reliance becomes the first Indian company to have a net worth of Rs 10 trillion and also enters the elite top 25 global companies list with net worth of $118 billion.

The reason behind bulls in Reliance stock is its steady Q4 results, which were in line with street estimates. Going ahead, experts believe Reliance Jio to be the biggest growth driver for the company, while their outlook is positive.

Reliance Industries Share Price:

At the time of writing, Reliance Industries stock price advanced by a breathtaking 5.6% to trade at Rs 1373.05 apiece on BSE. Its market cap was around Rs 18,58,197.78 crore.

Just a few minutes ago, Reliance stock zoomed by 5.7% to hit an intraday high of Rs 1374.25 apiece. Overall, its market cap gained by as much as Rs 1,00,279 crore to nearly Rs 18.6 lakh crore in the day so far.

Majority of brokerages have recommended BUY on Reliance.

Reliance Industries Share Price Recommendation:

Global brokerages like JP Morgan has recommended 'Overweight' on Reliance with target price of Rs 1,530 per share. Its rationale comes after the accelerating performance by Reliance Retail in Q4, better-than-expected Q4 consolidated PAT and EBITDA that was in-line. However, JP Morgan believes CAPEX remains a key concern, nonetheless, the valuations are favourable which could drive the share price in the near term.

Meanwhile, Jefferies has recommended a target price of Rs 1,660 per share. It believes growth in retail, a tariff hike and potential listing of Jio could be a major trigger for Reliance in FY26. Jefferies projected 10% EBITDA growth in FY26.

"Using the SoTP method, we value the O2C/E&P segments at 7.5x/5x Mar'27E EV/EBITDA to arrive at an enterprise value of INR420/sh for the standalone business. We ascribe an equity valuation of Rs 525/sh and Rs 520/sh to RIL's stake in JPL and RRVL, respectively. We assign Rs 75/sh (~INR1t equity value) to the New Energy business and Rs 26/sh to RIL's stake in Disney JV (based on transaction value). Reiterate BUY with a revised TP of Rs 1,515 (earlier INR1,510)," said Motilal Oswal's analysts in a note.

On Segment-wise, Motilal experts believe RJio to be the biggest growth driver with 21% EBITDA CAGR over FY25-27, driven by one more tariff hike, market share gains in wireless, and ramp-up of the Homes and Enterprise business. Also, Reliance Retail is ascribed to a blended EV/EBITDA multiple of 28x (30x for core retail and 6x for connectivity) to arrive at an EV of Rs 8.8 trillion.

"Overall, we build in a CAGR of ~13-14% in consolidated EBITDA and PAT over FY25-27, driven by a double-digit EBITDA CAGR in RJio and Retail. After a subdued FY25, we expect earnings to recover in the O2C segment, driven by improvement in refining margins. However, our FY27E consolidated EBITDA for O2C and E&P is marginally lower than FY24 levels," Motilal's analysts said.

During Q4FY24, Reliance posted a consolidated net profit of Rs 19,407 crore in Q4, registering a growth of 4.7% QoQ and 2.41% YoY. While revenue came in at Rs 288,138 crore in Q4FY25, registering growth of 8.8% YoY and 7.84% QoQ. The performance was supported by revenue growth in consumer business and O2C.

After its Q4 results, Reliance joined the bandwagon of the top 25 companies in the world, with a net worth of $118 billion, alongside biggies like Alphabet, Microsoft, Tesla and Amazon. In terms of market cap, currently, Reliance's valuation is around a whopping $219 billion.

Another bolstering factor for bulls in RIL is its upcoming dividend payout. Reliance declared a dividend of Rs 5.5 per fully paid-up equity share of ~ 10/- each for the financial year ended March 31, 2025. It said this payment of the dividend is subject to the approval of members of the company at the ensuing Annual General Meeting of the Company.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.