SBI became the most profitable company this quarter, surpassing Reliance Industries

The announcement of June quarter results has almost come to an end. If we check the BSE calendar, today is the last day for companies to declare their quarterly revenue. 

Everyone knows that Reliance Industries, the biggest conglomerate in India, is the largest company in terms of market capitalization and profitability. Surprisingly, this quarter, the State Bank of India has surpassed Reliance in terms of net profit for the recent quarter and posted greater profits than Reliance Industries. 

Although it is always good to compare apples to apples, and moreover, both companies belong to different sectors, we can still make the comparison because profit is the most significant part of every business, and it is not easy to beat the market leader who has held a significant position for a very long time. 

If we check the net profit of Reliance in the June quarter, it declined from Rs 19,443 crore to Rs 18,258 crore during the same period last year, which is approximately a 6% YoY decrease. 

On the other hand, the State Bank of India’s net profit jumped from Rs 7,796 crore to Rs 19,094 crore, which is almost 2.5 times the net profit during the corresponding quarter last year. 

In terms of market capitalization, Reliance Industries still holds the top position, having the biggest market capitalization in the Indian markets. 

If we compare the stock performance of both companies, then the shares of Reliance Industries are trading at Rs 2557 each on the BSE. The stock has provided a modest return of 11.5% in the last three months, whereas it has only yielded a 5.26% return in the past year, which is even less than the return of the S&P BSE Sensex, which has provided a 9.3% return in the past year. 

On the other hand, shares of the State Bank of India are trading at a price of Rs 560 each on the BSE. The stock has experienced negative returns of 3% in the last three months and 5.6% in the past year. SBI has also been unable to beat the Sensex return during the stated period. 

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.