Reliance Industries, India’s largest company by market capitalisation, surpasses Rs 19 lakh crore mark for the first time

The Indian market is shining today, trading significantly higher compared to Friday’s closing levels. The Nifty50 is currently trading at around 21,712 which is approximately 360 points above Friday’s closing level, while the BSE Sensex index is trading at around 71,852, over 1,150 points higher than the last trading day’s closing level.

The notable surge in Nifty is attributed to one of its heavyweights, Reliance Industries. The company’s shares rallied by over 7% today, forming a substantial green bar on the daily time frame chart.

Share performance

At the beginning of the trading session, the company’s shares started trading at Rs 2,729 per share on the NSE, approximately 1% higher than Friday’s closing price of Rs 2,706.15 per share. Intraday, it reached highs and lows of Rs 2,904.40 and Rs 2,720.35, respectively. As of writing this article, it is trading at Rs 2,889 each on the NSE. Furthermore, the company’s market capitalisation has crossed Rs 19 lakh crore for the first time, thanks to a significant surge today.

Since July 2023, the stock experienced a decline after reaching its peak at 2630.95, falling to 2258, representing a 14% decline by October 2023. However, the stock surpassed its previous peak on January 10, 2024, providing a significant breakout on the daily chart. This breakout caught the attention of investors, and the stock price has been rallying impressively, reassuring investors who have put their money into it.

Furthermore, the stock has achieved an impressive return of 28% over the past three months and a remarkable 40% return in the last year. Since the beginning of the current year, the stock has rallied around 13% based on the current market price.

Stock’s Yearly Return Since 2015:

Stock Chart (Daily):

Financial Performance

During the third quarter, the company reported revenues of Rs 2,25,086 crore, reflecting a growth of 3.85% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 2,16,737 crore. The company posted an operating profit of Rs 40,656 crore for the quarter, in contrast to an operating profit of Rs 35,009 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 19,641 crore, compared to a net profit of Rs 17,806 crore in the same period last year. Moreover, the company’s net profit grew by around 10.30% YoY during the quarter.

The company’s ROCE and ROE are 9.14% and 8.94% respectively and the stock is trading at a PE of 28 times in the market.

In terms of ownership, the Promoter holds 50.30%. The FIIs and DIIs hold 22.13% and 16.59%, while the government holds 0.18% and the remaining 10.80% is held by public investors, as per the most recent update.

Investors should keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.