Reliance's market capitalisation crosses Rs 21 lakh crore for first time
Reliance's market capitalisation crosses Rs 21 lakh crore for first time
Reliance Industries Ltd (RIL) has become the first Indian company to surpass a market capitalization of Rs 21 lakh crore.
The market cap of the oil-to-telecom conglomerate crossed Rs 21 lakh after shares hit a record high of Rs 3,129 in early trade. RIL's stock has surged more than 20% this year so far.
At 12:12 pm, RIL's stock price rose by 1.69%, reaching a record Rs 3,112.85 per share.
Today's rise in RIL's stock was propelled by Reliance Jio's tariff hikes. These new tariffs range from Rs 189 for 2 GB/month to Rs 3,599 for a 2.5 GB/day annual plan, with unlimited 5G data for plans of 2 GB/day and above.
Brokerage firm Jefferies increased its price target for RIL to Rs 3,580 from Rs 3,380, indicating a potential 17 percent upside from Thursday's close. The brokerage maintained a 'Buy' rating, predicting Jio's revenue and profit to grow at annual rates of 18% and 26%, respectively, from FY24 to FY27.
Morgan Stanley also maintained an 'Overweight' rating with a Rs 3,046 target price. The firm noted that the tariff hikes are in line with expectations and anticipates new energy cash flow streams by year-end.
While no further tariff hikes are expected until FY27, Morgan Stanley suggested that a 20% increase next year could boost earnings by 10-15 percent.
Kotak Securities viewed the tariff hike positively, expecting competitors Bharti and Vi to follow suit, and set a target price of Rs 3,300 for RIL.
Centrum Broking reiterated that industry ARPU is likely to grow at a 10-12% CAGR to Rs 300 over the next 3-4 years, considering the consolidated industry structure and higher ARPU requirements for Jio to justify significant 5G investments and a potential IPO.
Among the 35 analysts covering Reliance, 28 recommend a 'Buy,' five advise 'Hold,' and two suggest 'Sell.'
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