- The Mukesh Ambani-led Reliance Industries Ltd (RIL) became the first Indian firm to cross over 9 trillion market cap after its shares in Friday’s trading session increased by nearly 2 percent to reach 1.423.
- Ten of Bloomberg’s 14 analysts estimate consolidated net profit from RIL to be around 11,256 crores. The company’s revenue is estimated by nine analysts at around 1.51 trillion.
The Mukesh Ambani-led Reliance Industries Ltd (RIL) became the first Indian firm to cross over 9 trillion market cap after its shares in Friday’s trading session increased by nearly 2 percent to reach 1.423. Since January, the stocks have risen almost 26 percent. Investors are waiting for their earnings in the September quarter due later today.
India’s Sensex Index index rose to 39,252 points by 0.5 percent or 200 points.
On the back of the recovery in refining margins, which is likely to offset weakness in retail and telecom petrochemical operations, the company is expected to post strong earnings in the September quarter.
Ten of Bloomberg’s 14 analysts estimate consolidated net profit from RIL to be around 11,256 crores. The company’s revenue is estimated by nine analysts at around 1.51 trillion.
“Strong refining will drive a QoQ increase in the standalone PAT of Reliance. Jio’s Arpu may see a small cut but healthy subscriber additions may still allow QoQ to grow profit. The strong growth of Reliance Retail should continue,” CLSA said in a report to investors.
Macquarie Research expects to record 351 million subscribers to the telecom arm of Reliance Industries, while ARPU is expected to drop from 122 in the June quarter to about 120 in the September quarter.
As per Bank of America Merrill Lynch, RIL can become the first Indian firm to reach a $200 billion market capitalization over the next two years. The international fund and consulting firm affirmed their RIL purchase score with a price target of 1.615.
Source:- Wikipedia
The brokerage firm assumes that the market cap to raise over $200 billion on three informational drivers— new business venture, fixed broadband operations, and digital initiatives — could add an enterprise value of $55 billion for the business. The brokerage firm also expects that an incremental value of $22 billion can be applied to its digital initiatives such as ads, borrowing along with SME / broadband.
“RIL targets 10 million Kiranas by FY22; SME / broadband base of 9 million/7 million by FY22 and EBITDA margins of 50 percent/40 percent; Jio’s ARPU is forecast to rise from $1122 (1Q20) to $177 in FY22 and to predict better than expected IMO effect resulting in GRMs of $13 in FY21,” added the brokerage.
Recently, Reliance Industries became the first Indian firm to cross a market cap of $200 billion in 24 months, Merrill Lynch, Bank of America, said. RIL was reportedly controlling a $122 billion market cap. The international fund and consulting firm affirmed its RIL purchase score with a price target of 1,615. The bull-bear analysis shows a distorted risk-reward of 36 percent CAGR up from the current market price in the bull-case scenario and a downside of 17 percent in bear-case in 24 months, the research firm said. In a survey, BofA-ML said its analysis indicates that incrementally three disruptive engines— new business company, fixed broadband sector, and digital initiatives — could add an enterprise value of $55 billion for the enterprise.
