Mukesh Ambani Led Reliance Industries Could Hit $1 Trillion Market Cap Milestone By 2024; Report

Reliance Industries Ltd (RIL), India's largest company by revenue, profit, and market capitalization, is all set to breach the elusive $1 trillion mark in market capitalization. An analysis of historical data by CNBC-TV18 reveals an impressive growth trajectory for RIL, with its revenue surging at a compounded rate of 8.3% over the last decade and a substantial 15.9% between FY04 and 23.

If the company sustains its growth momentum at a minimum of 12% for the next 15 years, projections estimate a top-line figure of around Rs 50 lakh crore. This goal aligns with the vision articulated by Mukesh Ambani, Chairman of RIL, during the Reliance Family Day celebrations in December. Ambani expressed confidence in positioning Reliance Industries among the world's top 10 conglomerates, leveraging India's ascent as the world's third-largest economy.

Ambani remarked, "As India races ahead to become the world's third-largest economy, an unprecedented opportunity awaits Reliance. Reliance can...and Reliance will...grow to be among the top 10 business conglomerates of the world."

Globally, only seven companies have attained the trillion-dollar market capitalization status, including Microsoft, Apple, Saudi Aramco, Nvidia, Google, Amazon, and Meta. With a current market capitalization of approximately $250 billion, Reliance Industries has significantly climbed the global ranks over the past four years, ascending from the 82nd position to its current standing at 48.

Remarkably, the company's financial prowess extends to contributing 6% of NSE500 net profit in FY23, with a corresponding contribution to the aggregate revenue of the broader index. Over the last three years, Reliance Industries' market capitalization has consistently accounted for 6%-7% of India's gross domestic product (GDP).

In the context of the global economic outlook, where optimism surrounds India's growth story, Reliance Industries holds a distinct advantage as the nation's largest company. Goldman Research recently highlighted the expected rise of emerging economies, particularly in Asia, projecting India's GDP to surge from $2.8 trillion in 2020 to $6.6 trillion in 2030 and further reaching an impressive $13.2 trillion in 2040.

However, a note of caution is sounded regarding potential hurdles. The depreciation of the Indian Rrupee beyond the 92-level or the spinoff of RIL's existing verticals into another company could potentially alter the equation and impact the timeline for achieving the $1 trillion market capitalization milestone by 2040.

As Reliance Industries charts its ambitious course towards the trillion-dollar club, eyes are on the company's strategic moves, economic dynamics, and global market conditions. If successful, this landmark achievement would bolster India's corporate standing.

Disclaimer: The opinions and suggestions provided above represent the views of individual analysts and do not reflect those of GoodReturns or the author. We recommend investors consult with certified experts before making any investment decisions.

*Inputs from CNBC-TV18*