Don’t miss the latest developments in business and finance.

RIL becomes first Indian company to cross Rs 8 trillion in market cap

Thus far in calendar year 2018, RIL has outperformed the benchmark indices to rally 36.85%

RIL becomes first Indian company to cross Rs 8 trillion in market cap
Neeta Ambani and Reliance Industries Chairman, Mukesh Ambani arrives for the 40th AGM of Reliance Industries Ltd at Birla Matoshree, in Mumbai: Kamlesh Pednekar
SI Reporter New Delhi
Last Updated : Aug 23 2018 | 3:43 PM IST
Reliance Industries on Thursday became the first company to cross Rs 8 trillion in terms of market capitalisation (market-cap), becoming the country's most valued firm 

At 1:59 pm, RIL's market capitalisation (m-cap) stood at Rs 8.01 trillion. The stock ended at Rs 1,266.90 on the NSE, up 1.6%, extending its gains over the past four trading days.

Also Read: HUL, RIL, TCS among top gainers in Sensex's 8,000-point rally in 16 months

Thus far in calendar year 2018, Mukesh Ambani-controlled RIL has outperformed the benchmark indices and rallied around 37%. In comparison, the S&P BSE Sensex has gained 12.53% during this period, data show.

The company recently reported 17.9% year-on-year (y-o-y) growth in consolidated net profit at Rs 94.59 billion in June quarter (Q1FY19). During the June quarter, its consolidated revenue grew 56.5% yoy at Rs 1,417 billion.

The company’s consumer businesses accounted for nearly 21% of consolidated segment EBITDA. Retail business revenues have more than doubled and EBITDA has trebled on a yoy basis. Jio added a record number of subscribers, highlighting the compelling technology and value proposition that Jio offers vis-à-vis other networks.

Also Read: RIL will produce 10% of India's total gas demand from KG basin by 2022: BP

Analysts at Equirus Securities remain positive on the stock on the back of a string growth in the company's retail, petchem and digitalm businesses.

"RIL’s EBITDA in the first quarter of FY19 grew 65% to Rs 207 billion, 13% above expectations led by strong growth in petchem, retail and digital businesses. However, rising capex and a corresponding increase in net debt were a slight disappointment. Higher volumes led by stabilization of the vertically-integrated petchem project, strong up-cycle in petchem, robust growth in the consumer business and an improvement in R-Jio’s operating metrics would drive a 17% operating profit compound annual growth rate (CAGR) over FY18-FY20," the brokerage firm said in a recent note.
Next Story