The Mukesh Ambani-led Reliance Industries Ltd (RIL) has become the first Indian company to cross ₹9 trillion market capitalization. Its shares rose nearly 2% in Friday trading session. The shares have surged nearly 26% since January. Investors await its September quarter earnings due later today.
According to Bank of America Merrill Lynch, RIL can become the first Indian company to achieve a market capitalisation of $200 billion in the next two years.
“Strong refining will drive a QoQ rise in Reliance’s standalone PAT. Jio’s Arpu may see a small cut but healthy subscriber additions may still allow QoQ profit growth. Reliance Retail’s strong growth should continue,” said CLSA in a report to its investors.
The foreign fund and advisory firm Merrill Lynch has reiterated its buy rating on RIL with a price target of₹1,615. The brokerage firm assumes that the market cap to rise over $200 billion on three informational drivers – new commerce venture, fixed broadband operations and digital initiatives – could add $55 billion enterprise value for the company.