Mumbai: Conglomerate behemoth Reliance Industries achieved a new landmark as its market capitalization crossed the Rs 19 lakh crore mark for the first time ever. This came on the back of the company’s stock hitting yet another record high during Monday’s trading session.
Shares of RIL gained over 3.5% to close at Rs 2,798 apiece on the NSE, taking the company’s market value to Rs 19.18 lakh crore. The stock has been on a strong upward trajectory over the past year, delivering positive returns every month. In 2023 alone, Reliance shares provided returns of 11.5%, outperforming key benchmarks.
The latest surge was driven by continued optimism around the company’s robust performance and promising growth outlook across businesses. In its recent December quarter earnings, Reliance reported record profits and margins for its oil-to-chemicals division. The retail and telecom units – Jio and Reliance Retail – also maintained their growth momentum, accounting for around 50% of consolidated EBITDA.
Analysts believe discretionary spending is set to pick up in the coming quarters as the macroeconomic situation improves. This bodes well for Reliance’s consumer-facing businesses which are poised to gain further. The management has also guided towards strong capital expenditure plans over the next few years to expand operations.
On technical charts, the stock found support at its 100-day moving average in December and has since embarked on an upward rally. While the relative strength index is below the overbought mark, sentiment remains bullish. Fund managers and institutional investors have also been increasing their holdings, endorsing Reliance’s dominance.
By achieving the milestone market valuation, Reliance has underscored its position as India’s largest listed company. The diversified conglomerate has transformed into a digital behemoth, leveraging its strong cash flows and balance sheet. As it continues expanding across consumer-centric sectors, Reliance is well-placed to deliver robust growth and further wealth creation for shareholders in the coming years. Hitting new highs regularly, the stock continues powering ahead to greater heights.
In the end, Reliance Industries‘ unprecedented success is a testament to the strong leadership and strategic vision of its Chairman Mukesh Ambani. Over the past decade, Ambani has spearheaded the company’s foray into newer businesses like telecom, retail, and green energy through massive investments. RIL is now reducing its dependence on the volatile oil and gas sector. If it maintains this pace of transformation, Reliance is poised to dominate many sunrise industries and emerge as one of the world’s most valuable companies within the next few years. Its growing dominance of India’s corporate landscape has made Reliance a blue-chip stock that is indispensable for investors seeking robust long-term returns.
