Reliance Industries Share Price Today- RIL Hits 52-Week High, Market Cap Crosses 19 LCr

Surge in RIL Shares

Reliance Industries (RIL), India's most valued company, witnessed a remarkable surge of over 5% in its share prices on Monday, reaching a new 52-week high of Rs 2,826. This upward trend catapulted the company's market capitalization beyond Rs 19 lakh crore. At 1:02 PM, RIL shares were trading at Rs 2,848.80, marking a significant gain of Rs 138.45 or 5.11%.

Q3FY24 Performance

RIL's performance in the December quarter was largely in line with market expectations. The EBITDA of its O2C segment recorded a 14% decline quarter-over-quarter (QoQ) to Rs 140.6 billion due to maintenance in multiple units and lower cracks & deltas. However, Jio's EBITDA witnessed a modest increase of 1.4% QoQ to Rs 142.6 billion, while Retail EBITDA rose by 8% QoQ to Rs 62.7 billion, as reported by an ET report.

Profit After Tax

In Q3FY24, RIL's profit after tax amounted to Rs 19,641 crore, indicating a 1.2% decrease QoQ but a 10.3% increase year-over-year (YoY). This outpaced market expectations of Rs 18,080 crore. The PAT margin for the quarter stood at 8.7%, marginally higher than the previous quarter's 8.6%.

Analyst Outlook

Commenting on RIL's earnings report, Morgan Stanley expressed optimism, viewing it as a positive turning point in the company's investment cycle and energy profitability. The brokerage firm assigned a target price of Rs 2,821.

Analysts anticipate that 2024 will be a transformative year for RIL as the investments made in the past two years enter the monetization phase. Jefferies, predicting a 12% EBITDA growth in FY25, has set a target price of Rs 3,140, with Jio expected to make a significant contribution to this growth.

Sharekhan maintained a Buy rating on RIL, deeming it an attractive long-term investment opportunity due to its promising business prospects and the potential value unlocking from its retail, digital services, and financial services portfolio.

On the other hand, Citi downgraded RIL to a neutral rating, stating that the risk-to-reward ratio is fairly balanced. The brokerage firm has set a target price of Rs 2,910.

Conclusion

RIL's strong performance in the December quarter and positive analyst outlook signal a promising outlook for the company in 2024 and beyond. Investors will keep a close watch on the company's progress as it navigates the monetization phase of its investments and taps into new growth opportunities.