Among its peers, Reliance Industries Limited(RIL) has become the most expensive energy company after it followed a sharp rise in market capitalization. Based on this, it occupies 3rd position in the World Market after Saudi Aramco and Exxon Mobil.
The stock traded at ₹1959 on the Bombay Stock Exchange. As per Bloomberg’s data, on Wednesday, the stock market value was $170.36 billion.
In 2014, RIL expressed to come under the list of top 50 organizations of the world by 2017. Mukesh Ambani, Chairman, RIL claimed that with the launch of Jio, petrochemicals, and strengthening of the retail businesses they will achieve the mark of top 50 fortune companies. The market cap of RIL upsurged from ₹2.9 lac crores to ₹12,2 lacs crores in the year 2020. The stocks have gained a whopping 26%, the top-notch among global energy giants. The trading is now at 24.4 times one year forward earnings which are nearly double the long term average.
Investors have shown unwavering support to RIL shares whenever the company curtailed its debt. The average P/E (price-to-earnings) multiple during the investment phase from 2004-2006 was 7.5 which escalated to 17 during the deleveraging cycle between 2006-2008.
The non-wireless businesses of the company bring optimism about the ascent of revenue especially health, entertainment, and online education apps. Credit Suisse has stated that by the financial year 2024, the operating profit may touch nearly ₹15,000 crores. RIL has started advertisement based monetization by its user base on MyJio, JioSaavn, and JioTV.
The refining and marketing generate 51.16% of the company’s revenue, while its petrochemicals unit accounts for 22.35%. The share of retail businesses is 17.1% and, digital commerce is at 6% along with 0.66% contribution of exploration and production.
In March 2020, the shares of the consumer-based business which involves telecom and retail have risen to 38.6% i.e, a gain of 219 basis points. Further, due to the rising share of renewable energy RIL is focusing on improving the proportion of its petrochemicals division in the revenue.
Since mid of March 2020, the shares ascended more than 120%. By the selling of the shares, RIL so far has generated, ₹118,318.45 crore rupees. The investors have rewarded the company by curtailing the debt to zero beforehand. It also announced on 19th June that it is now a net-debt free company