RIL Soars To Record High, Market Cap Crosses Rs 20 Lk Cr; Become Most Valuable Company In India

Reliance Industries, led by billionaire Mukesh Ambani, has hit a new all-time high as its share price reached an all-time high, propelling the conglomerate's market capitalisation beyond Rs 20 lakh crore. The surge in Reliance's shares, which jumped 3.4% to Rs 2,949.90 per share on the Bombay Stock Exchange (BSE), marks a significant 47% increase from its 52-week low on March 20, 2023.

As of Friday, Reliance's market capitalisation stands at Rs 20.2 lakh crore, making it the most valued company on the Indian stock market. This accomplishment comes shortly after the company breached the Rs 19 lakh crore mark on January 29. The performance of Reliance Industries has positioned it as a key driver of the broader market, contributing to the gains of the frontline indices, Sensex and Nifty, which were trading nearly 1% higher each.

Reliance shares have been on a winning streak, gaining over 10% in January alone and continuing the positive momentum into February. This marks the fourth consecutive month of gains since November 2023, during which the stock has surged by an impressive 29%. Over the past year, Reliance shares have advanced by more than 34%.

The financial performance of Reliance Industries is underlined by its third-quarter results for the fiscal year 2023-24. On January 19, the conglomerate reported an 11% year-on-year increase in net profit, reaching Rs 19,641 crore. The financial figures were driven by a 3.2% YoY growth in gross revenue, which soared to Rs 2,48,160 crore.

The growth in revenue was primarily attributed to the continued expansion of Reliance's consumer businesses, particularly in the retail and oil & gas segments. These sectors have been pivotal in steering the company through a period of sustained growth. However, the oil-to-chemicals (O2C) arm experienced a decline in revenue due to lower price realisation.

Reliance Industries' success story in the market is further underscored by its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the December quarter. The EBITDA rose by 17%, reaching Rs 44,678 crore. This robust performance was largely fueled by the strong showing of the retail and oil & gas segments.

Market analysts attribute the surge in Reliance's share price and market capitalisation to the conglomerate's strategic diversification across various sectors. From energy to telecom and retail, Reliance Industries has managed to build a resilient portfolio, insulating itself from sector-specific challenges and uncertainties.

The shares of Reliance Industries were seen trading with gains of nearly 2% at Rs 2,899 per share as of 2 pm on the National Stock Exchange (NSE). The stock has given returns of over 34% to its investors in the last one year.