- 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.
At 11:40 a.m., Reliance Industries was trading at ₹2,800 a share, up nearly 1% from the previous close.
Over the past one month, Reliance’s shares have surged over 7% while the benchmark Nifty50 index has declined over 1%.
Thanks to the rally in the last one month, Reliance Industries is now bigger than global giants like PepsiCo, Toyota, Alibaba among others.
Source: Companymarketcap
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.
Note: Upside compared to
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