Reliance Industries Ltd (RIL) shares jumped over 3% on Tuesday, crossing the Rs 1,500-mark for the first time. This also makes the company the first among listed entities to hit a market capitalisation of Rs 9.5 trillion.
At 2:45 pm, RIL shares were trading at Rs 1,502.55, up 3%, after hitting the day’s high of Rs 1,511.45. Notably, the stock has risen by over 31% in the past one year compared with nearly 11% rise in the Nifty 50 index.
RIL shares rallied on Tuesday after Reliance Jio’s rivals Vodafone Idea Ltd and Bharti Airtel Ltd decided to increase voice and data tariffs with effect from 1 December 2019. Analysts expect the increase in tariffs by competitors could help Jio acquire more customers as India is considered to be a price-sensitive market. So far, Reliance Jio has not announced any price hike like its rivals.
RIL’s earnings has showed strong growth of late, mainly supported by its telecom (Reliance Jio Infocomm) and retail (Reliance Retail) businesses. RIL’s retail business has posted a seven-fold increase in revenue and a 14-fold increase in profit in the last six years.
Meanwhile, Jio has claimed that it is acquiring more than 10 million new customers every month.
RIL had earlier said that it has received strong interest from strategic and financial investors in its consumer businesses. “The company will induct leading global partners in these businesses in the next few quarters, and move towards listing of both these companies within the next five years, which will result in significant value unlocking,” brokerage firm Anand Rathi noted. Anand Rathi has a ‘buy’ call on the RIL stock with a target price of Rs 1,610.
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