By Urvashi Valecha
India’s most valued company by market capitalisation (m-cap), Reliance Industries, is now the world’s 51st most-valued company by m-cap. RIL, with current m-cap of $170 billion, is the only Indian company among 51 most-valued global firms.
RIL gained 2.9% during Monday’s volatile trading session outperforming the benchmarks after the company announced yet another stake sale in Jio to close at Rs 1,934.3. This time, Qualcomm will buy 0.15% in Jio Platforms for Rs 730 crore.
From its March 23 lows of Rs 884.05 a piece, the stock of RIL has jumped by more than 118.8% and its m-cap has nearly doubled.
In April of this year, the m-cap of RIL stood at $89.4 billion and the conglomerate had a rank of 98 among the most valuable companies. Over the last 91 days, it has gone up to the 51st place and added an m-cap worth $79.4 billion.
Ambareesh Baliga, an independent market expert, said, “It is significant for other Indian listed companies in the context that RIL has become another goal post for them to achieve. The only other company to reach that stage and the closest competitor is TCS, quoting at two-thirds the market capitalisation of RIL.”
Deven Choksey, MD, KRChoksey Investment Managers, said: “Tech companies in general command higher valuations globally. Though one could say that valuations have run up from their lows, but when compared to global tech companies, RIL’s valuation is yet to catch up fully.” He said going ahead, shareholders would benefit from the valuations from all three major businesses of RIL such as telecom, retail, and petrochemical. “Each of these companies is funding its own business now and the parent company will play the role of launching new business like payments, apart from holding and managing the operating companies. Eventually, RIL shareholders will benefit from market value each of the three companies will generate…” said Choksey.