Reliance Industries (RIL) overtook Tata Consultancy Services (TCS) and became the most-valued company in India on Friday after its market capitalisation touched Rs 4.56 lakh crore on NSE. Reliance ended Friday’s trade at Rs 1,402.50 a piece on NSE, R2.75 more than its price on BSE of Rs 1,399.75. On Tuesday, Reliance had briefly overtook TCS to become the most-valuable company. Shares of TCS, on the other hand, ended the session at Rs 2,312 on NSE with a market capitalisation of Rs 4.55 lakh crore – Rs 673 crore lesser than Reliance. However, on BSE, TCS regained its position as the most valued stock. TCS on Tuesday reported a 2.5% sequential drop in net profit to Rs 6,608 crore in Q4FY17 as its profit before interest and taxes (PBIT) margin contracted by 30 bps (q-o-q) to 25.7%. Revenue, similarly, dropped 0.3% (q-o-q) to Rs 29,642 crore compared to Rs 29,735 crore in the quarter ended December, 2016.
In February 2017, RIL stock crossed the Rs 4 lakh-crore-mark in terms of market capitalisation for the first time since May 2008. RIL shares have been on the rise after its telecom arm Jio announced that it will charge its customers and revenue growth in its core business. According to Bloomberg consensus estimates, Reliance may post a net profit of Rs 8,046 crore and revenue growth of 44% year-on-year at Rs 86,908 crore.
In the financial year (FY17), shares of Reliance Industries rose 26% against Sensex’s rise of 17%, while TCS shares fell 3.4%. According to Bloomberg consensus estimates, Reliance is trading at a forward Price/Earnings (P/E) of 14.96. Of the 39 brokerages who track the stock, 69.2% has given it a ‘buy’ rating while 28.2% has given it a ‘hold’ and the remaining 2.6% has given a ‘sell’.