Reliance Industries Extends Gains with Significant Market Valuation Jump
Reliance Industries Ltd shares surged on April 29, continuing the upward momentum from the previous day, after the company reported a 2.4% increase in net profit for the March quarter. The stock gained Rs 1.4 lakh crore in market capitalization over the past two days, reflecting the positive investor sentiment post-results.
Highlights:
Market capitalization increased by Rs 1.4 lakh crore in two days.
Stock surged 2.7% on April 29, reaching its highest level since October 2024.
Robust earnings growth and investor optimism contribute to the surge.
Strong Q4 Performance Drives Reliance’s Stock Surge
On April 29, shares of Reliance Industries rose 2.73% to an intraday high of Rs 1,406.1 on the NSE, while the stock reached Rs 1,406.4 on the BSE, marking its highest level since October 2024. This growth follows the company’s Q4 FY25 earnings report, which saw net profit rise by 2.4% to Rs 19,407 crore, beating analysts’ expectations. The increase in net profit was attributed to lower depreciation, interest, and tax rates.
Highlights:
Stock gains of 2.73% on April 29, hitting Rs 1,406.1.
Q4 profit grew 2.4% to Rs 19,407 crore, surpassing expectations.
The stock has surged over 8% in the last two trading sessions.
Q4 Revenue Growth Driven by Digital, Retail, and O2C Segments
Reliance’s Q4 revenue for the three months ending March 31, 2025, saw an 8.8% year-on-year growth, reaching Rs 2.88 lakh crore. This increase was driven by strong performances in the company’s digital services, retail, and oil-to-chemicals (O2C) businesses. The company’s Jio and retail segments were major contributors to the revenue boost, highlighting the company’s diversified portfolio and resilience.
Highlights:
Q4 revenue surged by 8.8% YoY to Rs 2.88 lakh crore.
Digital services, retail, and O2C segments were the primary growth drivers.
Jio’s continued growth contributes significantly to overall performance.
Brokerage Firms Increase Target Prices Following Q4 Earnings
Post the earnings report, several brokerage firms have raised their target prices for Reliance Industries. Motilal Oswal highlighted Jio’s potential as the major growth driver, projecting 21% annual EBITDA growth for FY25-27, driven by factors like an expected tariff hike, market share gains, and expansion in the homes and enterprise business.
Highlights:
Motilal Oswal projects Jio to lead with 21% annual EBITDA growth over FY25-27.
Strong performance across segments encourages brokerage firms to raise target prices.
Jio’s tariff hikes and market share expansion are key growth triggers.
Key Growth Triggers Identified by Nomura
Nomura Holdings identified several key growth triggers for Reliance Industries, including the scale-up of the new energy business, upcoming tariff hikes for Jio, and the potential IPO/listing for Jio. These factors are expected to unlock significant value for Reliance Industries and drive growth in the near term.
Highlights:
Nomura highlights new energy business scale-up and Jio IPO as major growth catalysts.
Tariff hikes for Jio expected to enhance growth prospects.
Upcoming Jio listing could unlock significant value for Reliance.
