RIL shares: Shares of Billionaire Mukesh Ambani-led Reliance Industries closed at lifetime high on Friday and its market value surged past Rs 7 lakh crore for the second time in a week. Notably, RILs market capitalisation (m-cap) stood at Rs 7.15 crore (USD 104 billion) at close of trade on BSE yesterday. On July 13, RIL’s m-cap had briefly surged past the Rs 7 lakh crore mark, making it the second company after IT major Tata Consultancy Services (TCS) to achieve this milestone. RIL stock rose by more than 2.23 per cent to close at Rs 1,128.55 on BSE on Friday. Notably, the shares have returned more than 22.5% since January.
Even as the shares closed at lifetime high levels on Friday, there is more upside according to research firms. Research firm Credit Suisse intiated coverage on the shares recently with target price of Rs 1,180 per share. It sees significant potential in consumer businesses. According to the firm, Reliance Jio has the potential to create significant value. “Petcoke gasification should help growth in refining,” the firm noted in its report.
According to a Bloomberg report, Reliance Industries, India’s second-largest company by market value, plans to raise about 400 billion rupees ($5.8 billion) in fresh debt this financial year as it expands its consumer businesses. Sources told the agency that the company will raise funds through loans and bonds, mostly in the Indian currency.
Notably, following the Q4 results, HDFC Securities on May 3 gave a price target of 1,178 level for the stock. 26 of 37 brokerages rate the stock “buy” or higher, five “hold” and six “underperform” or “sell”, according to Reuters.
While the share prices have peaked, and closed at fresh all-time high levels on Friday, Mukesh Ambani recently observed its journey. “It is a matter of great pride for me that, since Reliance’s IPO in 1977, our shareholders’ money has doubled every two and a half years, for the last 40 years,” Mukesh Ambani said at the event.