The big gets bigger – Mukesh Ambani’s Reliance Industries crosses ₹19 lakh crore in market cap

The big gets bigger – Mukesh Ambani’s Reliance Industries crosses ₹19 lakh crore in market cap
Mukesh Ambani, chairman and managing director, Reliance IndustriesBCCL
  • The Mukesh Ambani-led Reliance Industries is getting bigger, becoming the first Indian company to cross ₹19 lakh crore in market capitalisation.
  • The new record comes on the back of a 7% rally in the last one month while the benchmark Nifty50 index declined 1%.
  • One of the reasons behind RIL’s surge is the Russia-Ukraine crisis leading to strong refining margins for the company.
Mukesh Ambani’s Reliance Industries (RIL) is on a roll – India’s largest company has gotten bigger, with RIL hitting a market capitalisation of ₹19 lakh crore. This is the first ever for an Indian company.

At 11:40 a.m., Reliance Industries was trading at ₹2,800 a share, up nearly 1% from the previous close.

The big gets bigger – Mukesh Ambani’s Reliance Industries crosses ₹19 lakh crore in market cap
RIL share price in 2022BSE / Business Insider India / Flourish

Over the past one month, Reliance’s shares have surged over 7% while the benchmark Nifty50 index has declined over 1%.

Comparing Reliance Industries with its global peers

Thanks to the rally in the last one month, Reliance Industries is now bigger than global giants like PepsiCo, Toyota, Alibaba among others.

CompanyMarket capitalisation
Reliance Industries$248 billion
PepsiCo$239.7 billion
Toyota$233.3 billion
Broadcom$228.7 billion
Alibaba$225.7 billion
Cisco$211.44 billion
Walt Disney$210.8 billion

Source: Companymarketcap

What are the analysts saying?

The ongoing Russia-Ukraine conflict also has benefits for Reliance Industries, even as state-owned oil marketing companies find it difficult due to weaker marketing.

“While there are offsets to realised margins for refiners, RIL should still be a significant net beneficiary in the current environment, given its high diesel yield, high complexity, and high export ratio,” said a recent report by Citi Research.

It is worth noting that while analysts say that the refining margins are growing stronger, Reliance Industries’ oil-to-chemicals business might not see notable benefits from it in the March 2022 quarter. Experts suggest that the benefits of stronger refining margins will start flowing from the June 2022 quarter instead.

In addition to this, research reports also note that Reliance Industries’ new energy business has not been assigned a value yet. In the best case scenario, according to Morgan Stanley, there could be a 50% upside in RIL’s share price.

BrokerageRatingTarget priceUpside
Citi ResearchBuy317013%
Morgan StanleyOverweight325316%
Prabhudas LilladherBuy30459%
Motilal OswalBuy28803%

Note: Upside compared to RIL share price of ₹2,800, as at 11:40 a.m., April 27


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