Billionaire Mukesh Ambani-led Reliance Industries is just kissing distance away from hitting the Rs 9 lakh crore market capitlisation, even as shares jumped to record highs. Reliance Industries share price surged more than 1.4% intra-day to hit the day’s high at Rs 1,406.75 on BSE. The overall mcap of RIL has swollen to a whopping 8.84 lakh crore, making it India’s most valuable firm. Tata Group’s IT behemoth TCS comes at a distant second with a market capitlisation of 8.18 lakh crore.
In the latest quarter Reliance Industries reported a drop in standalone net profit for the first time in 17 quarters. Reliance Industries reported a total net profit of Rs 10,362 crore for the January-March quarter, 9.79% higher compared to the same period previous fiscal, achieving the feat of becoming first ever firm to report above Rs 10,000 crore profit in two consecutive quarters. For the full fiscal year, RIL reported a 13.1% rise in net profit to Rs 39,588 crore. The oil-telecom behemoth’s gross refining margin (GRM) a key metric of its profitability from turning crude oil into petroleum products slumped slightly in the quarter to $8.2 per barrel from $8.8 per barrel in the previous quarter.
Taking stock of the latest quarterly earnings, global brokerage firm Morgan Stanley said that the Q4 results came in 7% higher than its initial estimate, but with a slight miss on EBITDA. The refining margin is slightly better, but telecom ARPU is lower than expected, the firm added. Improved utilisation will drive earnings growth of 18% into FY20, sai Morgan Stanley adding that the firm s asset monetisation will help to transfer $8.7 billion of liabilities to InvIT. Morgan Stanley has an overweight call on the shares with a target price of Rs 1,230.
Kotak Institutional Equities has revised FY20-21 EPS estimates to Rs 75 (down 2%) and Rs 87 respectively ( up 1%). The brokerage firm said that it factors in lower subscribers/ ARPU for Reliance Jio, and a higher retail contribution going forward. The firm has a sell rating on the stock with a target stock price of Rs 1,100.