📷 Image Credits: The Times of India
Reliance Industries Ltd (RIL) has made history by becoming the first Indian company to surpass a market capitalization of Rs 21 lakh crore. The market cap of the conglomerate soared after shares hit a record high of Rs 3,129 in early trade, showcasing a remarkable 20% surge in stock value this year. The surge in RIL’s stock price was primarily attributed to Reliance Jio’s recent tariff hikes, which garnered positive responses from various brokerage firms.
Jefferies, one of the prominent global brokerage firms, raised its price target for RIL to Rs 3,580 from Rs 3,380, suggesting a 17 percent potential upside from the previous close. The firm maintained a ‘Buy’ rating and projected significant growth in Jio’s revenue and profit from FY24 to FY27. Morgan Stanley also expressed optimism by maintaining an ‘Overweight’ rating and setting a target price of Rs 3,046. The firm highlighted the alignment of the tariff hikes with expectations and anticipated new cash flow streams in the energy sector by the end of the year.
With industry experts expecting no further tariff hikes until FY27, there is speculation that a 20% increase next year could substantially boost earnings for RIL. The positive outlook on the tariff hike was reinforced by Kotak Securities, which projected competitors Bharti and Vi to follow suit and set a target price of Rs 3,300 for RIL. Centrum Broking also reiterated positive growth prospects, indicating a 10-12% CAGR for industry ARPU over the next 3-4 years.
The phenomenal achievement of Reliance Industries in crossing the Rs 21 lakh crore market cap presents a significant milestone in India’s business landscape. As one of the leading conglomerates in the country, RIL’s success reflects the positive sentiments and growth potential in the Indian business sector. The response from brokerages and industry analysts further underscores the confidence in RIL’s strategic moves and market positioning. With an array of positive forecasts and targets, Reliance Industries continues to be a key player driving economic growth and innovation in the Indian market.
