From Rs 10 to Rs 350 in 5 yrs! Why this multibagger Reliance Group stock is buzzing today?

Shares of Reliance Infrastructure Ltd rose nearly 2 per cent on Wednesday after the flagship company of Anil Ambani-led Reliance Group became the first private sector company in India to design and develop four types of new generation 155mm artillery ammunition.

New generation ammunition will help Indian Ministry of Defence (MoD) source it from Reliance under Make in India, cutting down import dependency. Given the advantage of range  and accuracy, Reliance is also exploring exports, which can contribute another Rs 10,000 crore in revenue over the next 10 years.

Following the update, shares of Reliance Infrastructure jumped nearly 1.9 per cent to Rs 348.45 on Wednesday, commanding a total market capitalization close to Rs 14,000 crore. The stock had settled at Rs 341.95, while it tested its 52-week high at Rs 359.50 on Monday.

The stock has surged nearly 3,500 per cent from its covid-19 lows, hit nearly 5 years ago. The stock has gained more than 140 per cent from its 52-week low at Rs 143.70. The stock has gained more than 35 per cent in the last one month. The stock is still 85 per cent down from its all time high at Rs 2,485 hit in January 2008.

A Reliance Infrastructure spokesperson said that development work on all four projectiles has been completed. Ten Indian companies have been fully integrated in the supply chain and the production can start immediately. Development is based on fully indigenous technology.

New generation ammunition were developed under design-cum-production partner program of Armament Research and Development Establishment of DRDO under the Ministry of Defence. In a competitive process, Reliance Infra was the only Private sector company selected along with the Public sector Yantra India Ltd.

This will contribute significantly to Reliance’s target of becoming the top three exporters of Defence Hardware and services from India.  The company is setting up a greenfield explosive and ammunition facility in Ratnagiri at Dhirubhai Ambani Defence Coty with an investment of Rs 5,000 crore

As per a recent report by KPMG, expenditure on ammunition by the Indian Army will go up from Rs 7,000 crore in 2023 to Rs 12,000 crore per annum by 2032.

Reliance Infra, in its recent release, said that the company has made full payment of Rs 92.68 crore to Dhursar Solar Power Pvt Ltd. towards claim of tariff as per the energy purchase agreement with the company. It has also appealed NCLAT to seek withdrawal of the order dated May 30, 2025 passed by NCLT Mumbai for corporate insolvency resolution process.