Mumbai, July 17 (IANS) The market capitalisation (m-cap) of industrialist Mukesh Ambani-led Reliance Industries (RIL) crossed the Rs 500,000 crore-mark for the first time on Monday.
According to market observers, RIL became only the second company after Tata Group’s multinational IT firm Tata Consultancy Services (TCS) to cross the Rs 5 lakh crore mark in terms of m-cap.
On Monday, RIL’s m-cap closed at Rs 504,458.09 crore, as the company’s shares on the BSE gained 1.33 per cent or Rs 20.30 to Rs 1,551.35 from its previous close at Rs 1,531.05.
“Reliance Industries crossed the Rs 5 lakh crore mark for the first time in its trading history. It become only the second firm to do so after TCS,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“RIL’s stock surged 11 per cent in July and over 41 per cent on a year-to-date basis.”
Deepak Jasani, Head, Retail Research, HDFC Securities, said that RIL has been one of the best performing stocks among the large-caps.
“Apart from its traditional businesses of refining and petrochemicals which are doing well, the new businesses of telecom and retail will gradually start contributing to the overall profitability as they narrow their losses,” Desai told IANS.
“Return ratios that have been depressed so far will look up as more assets start getting commissioned and generate revenues and later profits. Value unlocking by way of demerger of some businesses remains a distant possibility,” Jasani added.
The company will release its financial results for the quarter ended June 30, 2017 on July 20, Thursday.