Reliance Industries (RIL) on Monday attained a market valuation of more than Rs 5 lakh crore, becoming the second Indian company after Tata Consultancy Services (TCS) to achieve this milestone. The market cap of TCS on Monday was Rs 4.72 lakh crore.
Shares of Reliance Industries surged 1.33% before closing the session at Rs 1551.35 on BSE. The stock hit its new 52-week high at `1,558.80. The gains in the stock were led by expectation of positive announcements in annual general meeting which is due on July 21 and earnings for the first quarter on July 20.
According to Motilal Oswal, mobile broadband industry remains steady which has been led by RJio with market share of 43%. “MBB subscribers increased steadily by 7.4 million to reach 273 million. RJio continues to drive industry MBB subscription, contributing 65% of overall ads,” added Motilal Oswal. The market capitalisation of Reliance Industries was `5.04 lakh crore on Monday, the highest m-Cap in its lifetime. The company is currently the most valued company on the bourses. TCS had hit this milestone three years back in July 2014. Later in November 2014, the market capitalisation of TCS surged to 5.43 lakh crore.
Analysts expect announcements regarding RIL’s low priced 4G feature phone. With regard to RIL’s refining business, one of the key drivers for its profitability over the last two years has been discounts on heavier crudes. JPMorgan forecasts consolidated.
PAT of Rs 8,050 crore and expects some reduction in RIL’s refining premiums. “In Petchem, we should see some increase in PX production, and spreads across PE and PX have been broadly been stable q/q,” added JPMorgan in a report.
Of the 38 analyst tracking the RIL stock, 61.5% have a ‘buy’ rating, 30.8% have a ‘hold’ rating and the rest have ‘sell’ rating, showed Bloomberg data.