Top 50 and Rs 20 lakh crore: The unstoppable force of Reliance Industries

Reliance Industries Limited (RIL), the Indian multinational conglomerate, has been making waves in the global market. As of February 13, 2024, it ranks 44th among the world’s most valuable companies by market capitalisation, boasting a market cap of Rs 19.8 lakh crore (approximately $238 billion). This is a remarkable feat for an Indian company, and it highlights Reliance’s growing stature in the global business landscape.

A Record-Breaking Surge

The stock of RIL soared by 1.89% on the Bombay Stock Exchange (BSE), hitting a fresh 52-week high of Rs 2957.80. This remarkable surge in stock value has led to a staggering increase in RIL’s market value by Rs 1 lakh crore in just the past two weeks.

A Stellar Year of Growth

The year has proven to be exceptionally fruitful for RIL, with its share price witnessing an impressive 14% increase so far. This Mumbai-based conglomerate, spanning sectors from oil to telecommunications, has emerged as a key driver of wealth creation in the Indian stock market.

RIL’s Journey to Dominance

RIL’s ascent to the summit of market capitalization has been a journey marked by resilience and innovation. From achieving a market capitalization of Rs 1 lakh crore in August 2005 to crossing the Rs 10 lakh crore mark in November 2019, RIL’s trajectory has been nothing short of remarkable.

Reliance’s Rise to the Top

So, how did Reliance achieve this impressive ranking? Here are some key factors:

• Diversification: Reliance has been aggressively expanding into new sectors, such as retail, telecommunications, and renewable energy. This diversification has helped the company to reduce its reliance on oil and gas, which has been a volatile market in recent years.
• Digital Transformation: Reliance has been at the forefront of digital transformation in India, launching its Jio telecom network and JioMart online marketplace. These initiatives have helped the company to tap into the growing digital consumer market in India.
• Strong Leadership: Reliance is led by Mukesh Ambani, one of the most respected business leaders in India. Ambani’s vision and strategic direction have been instrumental in the company’s success.

Global Recognition

Source: companiesmarketcap

• Netflix (Rank 42): The American streaming giant boasts a market cap of $241.42 billion, slightly ahead of Reliance. However, it’s worth noting that Netflix’s growth has slowed down in recent quarters, while Reliance is on an upward trajectory.
• International Holding Company (Rank 43): This Abu Dhabi-based sovereign wealth fund has a market cap of $238.92 billion, very close to Reliance’s valuation. This suggests that Reliance is playing in the same league as major international investment firms.
• ICBC (Rank 45): The Industrial and Commercial Bank of China is a financial powerhouse with a market cap of $238.66 billion. While Reliance is not quite there yet, it shows the company’s potential to become a major player in the global financial sector.
• Pepsico (Rank 46): The American food and beverage giant has a market cap of $234.49 billion. This comparison highlights Reliance’s diversification beyond its traditional oil and gas roots.

Financial Resilience

Despite the ever-evolving market dynamics, RIL has continued to deliver robust financial results, meeting market expectations. In Q3FY24, RIL reported a profit after tax of Rs 19,641 crore, showcasing a slight decrease of 1.2% QoQ but a commendable increase of 10.3% YoY.

Overall, Reliance Industries is a remarkable success story. The company’s rise to the top 50 most valuable companies in the world is a testament to its diversification, digital transformation, and strong leadership. As Reliance continues to grow and expand, it will be interesting to see what the future holds for this Indian giant.

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.