Reliance Crosses Rs.15 Trillion Market Capitalization

On Friday, 03 September Reliance rallied 4.12% and achieved one more milestone. It became the first Indian company to cross Rs.15,00,000 crore market capitalization. At the current exchange rate, that translates into $205 billion. The Reliance stock has given 20% returns in calendar year 2021, almost at par with Nifty.

Over the last 5 years, the stock of Reliance has rallied nearly 5-fold as its market cap has expanded from $45 billion in Aug-2016 to $205 billion in September 2021. For almost 9 years between 2007 and 2016, the market cap of Reliance went nowhere as markets were unsure of how the company will profitably deploy the cash pile generated by the refining and petro-chem business.

Check: Reliance Industries (RIL) Share Price at 52 Week High

Over last 5 years, several triggers pushed Reliance stock higher. It made a big shift to digital and within 4 years of launch, Reliance Jio has over 41 crore subscribers and is the largest mobile company in India. More than the telecom numbers, it is the ownership of the digital ecosystem that impressed the markets.

Reliance Retail has emerged as India’s largest retailer. While Retail has become a big contributor to the top line of RIL, the digital business is contributing to RIL EBITDA in a significant way. To add to this slew of good news, RIL managed to place shares in its digital and retail ventures with marquee PE investors and strategic partners. Reliance also raised Rs.53,100 crore via rights. As promised in the 2019 AGM, RIL is a zero net debt company.

In the last few months, it is the O2C (oil to chemicals) business that is in the limelight. Apart from a likely sale of stake to Saudi Aramco, RIL is also planning a major green shift towards becoming a zero-carbon footprint company by 2030. Clearly, aggressive growth, debt reduction and cutting edge industry positioning helped RIL cross the Rs.15 trillion market cap mark.

Also Read: Reliance AGM