Reliance Industries Limited (RIL) achieved a historic milestone on Tuesday as it became the first Indian company to surpass a market capitalisation of Rs 20 lakh crore.
The oil-to-telecom conglomerate achieved the feat after its shares hit a 52-week high of Rs 2,958, rising nearly 2 per cent. It may be noted that RIL shares surged by 1.88 percent to reach a high of Rs 2,957.80 on the Bombay Stock Exchange (BSE).
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This recent surge in RIL’s market cap has significantly boosted Mukesh Ambani’s fortunes, with his wealth soaring to $109 billion, marking a $12.5 billion increase in 2024 alone.
He currently holds the title of the richest Indian and ranks 11th globally, according to the Bloomberg Billionaire index.
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Over the past decade, Reliance has successfully diversified its business portfolio, transitioning from a legacy oil and gas entity to a leader in digital services and retail. In the telecom sector, RIL has emerged as an industry frontrunner, investing significantly in 5G infrastructure, according to brokerage BNP Paribas.
BNP Paribas noted in its report that RIL is well-positioned to capitalise on the growing data demand in India and potential tariff increases. It values RIL’s telecom business at 11 times FY26 EV/Ebitda, slightly higher than its peers due to Jio’s substantial upfront investments in infrastructure and digital expansion.
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The brokerage also values Reliance Retail at 35 times FY26E EV/Ebitda, taking into account its rapid store-space expansion and promising growth prospects. It has a target price of Rs 3,080 on RIL.
Furthermore, the oil-to-chemicals (O2C) division of Reliance is valued at 7.5 times FY26E EV/Ebitda, reflecting its higher refining margins and private ownership compared to government-controlled oil marketing companies (OMCs).
