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15 Nov 2019, Edition - 1585, Friday

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Business

Reliance Industries re-enters $100-billion market capitalisation club after 11 years

businesstoday.in

The Reliance Industries stock reclaimed the $100-billion market capitalisation mark amid Sensex and Nifty hitting record highs in trade today. It had crossed the coveted milestone in October 2007. The firm has become the second Indian firm to enter the coveted league after market capitalisation of TCS crossed the $100 billion milestone on April 23, 2018. It hit a high of Rs 3,557 on the BSE and reached $103 billion (Rs 6.8 lakh crore market capitalisation).

The Reliance stock rose to its intra day high of 1091 level, a rise of 5.27% from previous close.

Its market capitalisation rose to Rs 6,88,766 crore on the BSE.

At 12:10 pm, the Reliance Industries stock was trading higher by 4.92% or over 50 points higher at 1087 level.

The stock has been gaining for the last five days and has risen 13% during the period.

It has gained 44% during the last one year and 18% since the beginning of this year.

In the run up to the rally, the stock closed 3.02% or 30.10 points higher at 1025.75 level becoming the top gainer on Sensex on July 10. It opened at 1001 level and hit an intra day high of 1028.50 in trade.

The stock rose on July 10 amid reports that brokerage Credit Suisse has initiated coverage and gave a target price of Rs 1,180 assigning ‘outperform’ rating for the share of Mukesh Ambani-owned conglomerate.

“We believe refining and petrochemical businesses are well understood but Jio’s ability to create significant value from the ecosystem that it is building could make a difference. Jio is much more than a telecom business. Lastly, petcoke gasification should help growth in refining margin of Reliance Industries,” Credit Suisse said.

The stock also got a push after a media report said India Gas Solutions, a joint venture between Reliance Industries and BP Plc, would bid for city gas distribution licences in the current auction round.

Meanwhile, Macquarie gave outperform rating to the stock with a potential upside of 25%. The brokerage has given a target price of Rs 1,240 for the stock.

The brokerage expects gross refining margin of the conglomerate to reach $20 a barrel by financial year 2020-21 against the estimated $12 per barrel as RIL is expected to benefit with its refining hub-the world’s biggest- in Jamnagar, Gujarat having the ability to process a wide range of distressed crude grades.

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