The Ambani’s leading organization Reliance Industries which was half of the Indian Oil Corporation till 11 years has displaced the public sector unit as the largest company by revenue. For instance, the gross revenue of RIL hiked by 44.8% in FY19 to Rs 5.67 lakh crore whereas the IOC revenues increased by 28.03% during the year to Rs 5.28 lakh crore-Rs 38,986 crores less than that of RIL, Bloomberg data show.
Regards to this drastic increase, RIL has accomplished the numero uno position in terms of all three parameters — revenue, profit, and market capitalization. With huge refining margins and an increased concentration on the retail business, RIL witnessed a 14.1% CAGR for its full-year revenues between FY10 and FY19. On the other hand, revenues of IOC grew at a much steeper rate of 6.3% during the same term.
According to yesterday data, RIL hikes of the market capitalization of Rs 8.4 lakh crore — nearly a 10th of the Nifty’s market value of Rs 86.4 lakh crore. The company also celebrates a similar share in the combined revenues and profits of the whole index constituents.
After striking a peek at the beginning of May, the RIL stock lacks its beauty and plunged over 12.5% in 10 days. Nevertheless, it has regained since then with a gain of over 7.6%. Surprisingly, RIL which hikes of the leading cash reserves of Rs 1.33 lakh crore on the book, also has the largest gross debt of Rs 2.88 lakh crore at the end of March 2019.
As of Monday, 61.1% of the 36 analysts that track RIL had a “buy” recommendation on the stock, with those of Nomura having a one-year price target of `1,620 per share compared with the closing price of Rs 1,325.90.