Reliance Dislodges TCS to Become India’s Most Valuable Company
Jul. 31, 2018With Reliance Industries’ stock price hitting an all-time high of Rs. 1,179 on BSE earlier today, the conglomerate has gone past Tata Consultancy Services (TCS) to become the most valuable company in India.
The Mukesh Ambani-led company is now said to be worth Rs. 7.41 lakh crore as opposed to TCS’ market-cap of Rs. 7.39 lakh crore. The company’s stock has gained around 28 percent this year on the back of strong growth in the petrochemical, retail and telecom sectors.
Reliance’s stock started its current upsurge after the company, aided by higher oil prices andrapidly multiplying Jio subscribers, posted its highest-ever quarterly net profit of Rs. 9,459 crore for the April-June period.
According to MoneyControl, analysts have retained a positive outlook on the stock, and have continued to maintain ‘buy’ or ‘overweight’ ratings even after the sharp increase over the past few months. Morgan Stanley, for one, retains its overweight rating on the stock with a target at Rs 1,230 per share.
While telecom remains a relatively small part of its business, the continued success of Jio is also being seen as a positive by investors. At its earnings call last week, the company revealed that the carrier posted anet profit of Rs. 612 croreon revenues of Rs. 8,109 crore during Q1 FY18-19.
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