On Friday, the conglomerate Reliance Industries hit the market cap of 9 trillion, becoming the first Indian company to scale to this height. The gains of 2% in early intra-day supported the momentum when the stock hit a price of Rs. 1,423 per share while the benchmark index gained just 0.5% or 200 points.
Earnings result of the company is expected later today.
For the quarter ended September, the Mukesh Ambani oil to telecom major is expected to report higher earnings driven by better refining margins which may make in for the slowdown in telecom and petrochemicals retail.
“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.
Bank of America Merrill Lynch in its report said that RIL could become the first Indian firm to reach an m-cap of $200 billion in the next 2-years. The foreign firm had given a buy rating to the firm with a price target of Rs. 1,615.
The stock of RIL was last quoting 1.84% higher at Rs. 1421.75 on the BSE.