Reliance Industries at all-time high; crosses Rs 19 lakh cr m-cap for the first time

Of late, the shares of energy-to-telecom behemoth Reliance Industries have been on a roll. The stock jumped over 1 per cent to hit an all-time high of Rs 2827.10 on BSE in early trade on Wednesday.

The market cap of the Mukesh Ambani-led conglomerate also crossed Rs 19 lakh crore mark and it became the first company to cross that historic mark.

Recently, Morgan Stanley raised the target price of the stock to Rs 3,253 per share from Rs 2,926. The brokerage also reiterated its overweight/inline stance for the firm.

It sees multifaceted hydrogen boost for RIL with up to $25 billion potential energy upcycle which should help fund its growth and lift multiples.

"As world retools way it produces and uses energy, and as energy security takes center-stage, green hydrogen is gaining attention. Hydrogen adoption plans are quickly progressing, with RIL best positioned to capitalise on them," the brokerage house added.

The company is yet to announce its March quarter results. Ravi Singhal, vice chairman, GCL Securities said, “Crude oil prices have remained positive throughout the March quarter. Hence, the market is expecting a big improvement in GRM leading to strong Q4 results. So, bulls have been pumping money in RIL shares.”

ICICI Securities projected that Reliance Industries may post 64.60 per cent year-on-year (YoY) growth in profit after tax and a 66.30 per cent rise in EBITDA. The brokerage firm also sees a 36.80 per cent rise in revenue for RIL in the March quarter.

Recently, Reliance Brands Limited (RBL) announced that it has signed an agreement to invest in Indian couturiers Abu Jani Sandeep Khosla (AJSK) for a 51 per cent majority stake.

RBL is a subsidiary of Reliance Retail Ventures Ltd and began operations in 2007. In the past five years, RBL has also invested in building and operating homegrown Indian designer brands.

Reliance Industries posted better-than-expected financial results for the third quarter ended December 31.  The company reported 41.58 per cent YoY growth in consolidated net profit (attributable to owners of the company) at Rs 18,549 crore. It had posted a profit of Rs 13,101 crore in the same period last year.