Mukesh Dhirubhai Ambani led Reliance Industries Limited (RIL) is not the first Indian company to capture over $9 trillion market capitalization
The Mukesh Ambani-led Reliance Industries Ltd (RIL) has become the first Indian company to cross ₹9 trillion (9 lakh crore) market capitalization after company’s shares rose almost 2% during the trading session on Friday by hitting Rs. 1,423. Since January 2019 the share price have seen a surge of almost 26%.
India’s Sensex Index rose by 0.5% (200 points) and closed at 39,252 points.
Experts expect the company to show huge earnings in the quarter ending in September after recovery from refining margins which will counterbalance its weakness in telecom and petrochemicals division.
According to a poll held by a leading New York based company, RIL’s combined net profit is expected to be over Rs. 11,000 crore and revenue around Rs. 1.51 trillion (1.51 lakh crore).
According to the report shared by CLSA ‘Strong refining will drive a QoQ rise in Reliance’s standalone PAT. Jio’s ARPU (Average Revenue Per User) may see a small cut but healthy subscriber additions may still allow QoQ profit growth. Reliance Retail’s strong growth should continue’.
According to Macquaire Group forecast, RIL’s telecom division would report around 351 million (35.1 crore) subscribers but the ARPU will drop to Rs. 120 in this quarter compared to Rs. 122 in the June quarter.
According to a report published by Merrill Lynch Wealth Management, in the coming 2 years RIL could become the first Indian company to attain $200 BILLION (Rs. 1.4 million crore, yeah we could even tell the amount in Indian numbering system) market capitalisation.
The key drivers according the Merrill Lynch that will push RIL to $200 billion m-cap will be- fixed broadband division, new commerce venture, and the digital initiatives, these three divisions could add up to $55 billion value to the company. The digital initiatives like advertising alone will add $22 billion value to the company.
The company added ‘RIL targets 10 million Kiranas by FY22; SME enterprise/broadband base of 9 million/7 million base by FY22 and EBITDA margins of 50%/40%; We estimate Jio’s ARPU would increase to ₹177 in FY22 from ₹122 (in 1Q20) and estimate better than expected IMO impact leading to GRMs of $13 in FY21’.