Reliance Industries Ltd (RIL) has become the first Indian company to cross Rs 10 trillion market capitalization. The stock was raised up around 1 per cent at Rs 1,581.60. The shares have surged nearly 40 per cent so far this year.
“Higher refinery margins, the potential for telecom tariff raise, bottoming PE cycle, the start of gas production, lower Capex intensity and path to deleveraging have led to investors asking if our bull case could play out despite above-average forward multiples. Sequential rise in earnings quality keeps us OW”, said Morgan Stanley in a 19 November.
The decision of RIL subsidiary Reliance Jio Infocomm Limited to hike tariffs next month has also spurred buying interest in the stock. An SBI Cap report said another factor worth watching is whether Jio matches incumbents on pricing or continues to operate 20 per cent below incumbents. “If Jio decides to match others’ on pricing, Bharti Airtel and Vodafone may benefit from the lower churn, and Jio will likely emerge as the largest beneficiary on revenue increase,” the report said.