This was the biggest single-day gain that the Mukesh Ambani-led conglomerate had since June last year.
Reliance Industries was also the top contributor to the Nifty 50 upside on Monday. The index surged 280 points on Monday and nearly 40% of that gain, came via Reliance Industries.
As a result of the biggest single-day jump in 10 months, shares of Reliance Industries added close to ₹93,000 crore to their market capitalisation.
At the close of Monday’s trading session, Reliance Industries had a market capitalisation of ₹18.52 lakh crore. The firm, last year, had also crossed ₹20 lakh crore in market capitalisation.
Reliance Industries reported a resilient fourth quarter with a positive surprise coming in from the retail vertical, which grew over 16% from last year. Analysts had cited that any number above 15% will be a strong number from the retail business.
Apart from retail, analysts cited scaling up of the new energy business, and a potential listing of Jio in the current financial year as some key near-term triggers for the stock.
“New energy, people have been valuing at a multiple of capital employed. What has probably changed is as visibility continues to emerge in terms of the timelines of completion of some of these plans, all of us will probably start to sort of build in specific tangible numbers coming through. So the valuations will probably see a rejig up or down. We don’t know at this point. But as far as we are concerned, we are valuing at about 1.5 times the initial capital investment that was announced of ₹750 billion, which transfers something like ₹50-60 a share,” Probal Sen of ICICI Securities said.
35 out of the 38 analysts who have coverage on Reliance Industries have a “buy” recommendation on the stock, with price targets heading up to as high as ₹1,710 per share over the next 12 months. You can read more on that here.
Reliance Industries also became the first Indian firm to have a net worth of ₹10 lakh crore on Friday.
Shares of Reliance Industries ended 5.1% higher at ₹1,366.3. The stock is now up over 7% in the last one month, taking its year-to-date advance to 12%. The stock is still 15% below its record high level of ₹1,608.
