Reliance Industries (RIL) Market Capitalisation Skyrocketed To $150 Billion In Intraday Trade On June 22, The First Indian Company To Achieve The Feat.
The Stock, Which Hit A Fresh Record High Of Rs 1804.10 On The BSE On Monday, Has More Than Doubled Investors’ Wealth Since Hitting A Low On March 24.
The Scrip Has Gained 20 Percent So Far In 2020.
At 10:00 Am, RIL Was Trading 1.69 Percent Higher At Rs 1,789.
The Rally Seen In RIL Was Swift And Largely Backed By The Deals Which Helped The Mukesh Ambani-Led Company Become Debt-Free Company Well Ahead Of Its Target Of March 2021.
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The Cumulative Investment Resulting From 11 Deals Struck By Reliance Industries For Its Digital Unit, Jio Platforms, Over The Past Nine Weeks Amounts To Rs 115,693.95 Crore.
The Recent RIL Rights Issue Garnered Rs 53,124.20 Crore. Together With Jio Investments, RIL Managed To Raise Rs 1.68 Lakh Crore To Become Net Debt-Free.
“Within The Short Period Of About 59 Sessions, RIL Had Doubled The Wealth Of The Shareholders Especially During The Time Of The Pandemic. RIL Has Become India’s First $150 Billion Company. In Indian Currency, The Valuation Is More Than Rs 11 Lakh Crores,” Gaurav Garg, Head Of Research At Capitalvia Global Research Limited- Investment Advisor Told Moneycontrol.
Experts Are Of The View That RIL Turning Debt-Free And The Potential Listing Of Jio And Retail Arm Of The Conglomerate Is Likely To Result In A Rerating Of The Stock In The Near Term.
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Not Only Does This Reaffirm Jio’s Potential Transformation As A Technology Giant In The Eyes Of Global Investors, But Also Helped In RIL’s Goal Of Reaching Its Net-Zero Debt Goal At A Faster Clip.
Jio’s Dominant Position Should Allow It To Garner Strong Consistent Growth Over The Long Term. We Are Positive On Jio’s Multiple Monetisation Avenues Coming From Increasing Long-Term Arpus And Other Digital Applications With The Facebook Deal.
Fundamentally, The Fundraising Warrants For Rerating Of The Stock As Unlocking Of Value By Listing Reliance Jio And Retail Will Create Wealth For Its Shareholders From A 3 To 5-Year Perspective. However, The Current 94 Percent Rally In The Past 3 Months Is Unsustainable As The Human Mind Can Easily Extrapolate But Markets Act Differently All The Time.
Investors Think Stock Prices Will Move In A Straight Line But Realistically It Has Its Own Ups And Downs. And A Realistic Growth Path For Reliance Although Is Higher In The Long Term But In The Short, To Medium Term It Will Largely Underperform And Disappoint Investors Who Invest At Higher Levels.
News Source: BussinessToday
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