Reliance Shareholders Alert: Reliance Industries Shares Hit Record High; Market Cap Crosses Rs 19 Lakh Cr Mark

Shares of Reliance Industries Ltd(RIL) shares hit a new record high level on Monday (January 29), taking the company's market capitalisation above Rs 19 lakh crore mark. RIL shares traded at a new 52-week high value of Rs 2826.00 today. Before this, the share price of Reliance Industries touched a new 52-week high of 2855 on July 19, 2023.

At 11:58 am IST today, RIL shares were up 4% at Rs 2818.80 per share. At the time of writing this article, the company has a market capitalization of Rs 19,07,009.97.

Why the rally in Reliance shares?

The sudden rally in shares of Reliance Industries was seen even though there was no new announcement or business update by the company. However, the positive sentiments in the broader market and rally on Dalal Street where both major indices Sensex and Nifty 50 were up over 1% may have contributed to bullish trading in shares of Reliance Industries Ltd shares today. Along with this, the company's recent Q3FY24 results, which saw 9.3% year-on-year (YoY) growth in consolidated net profit may have also contributed to the drastic jump in the company's share price.

Meanwhile, Oil prices surged almost 1% on Monday on fuel supply concerns after a missile struck a Trafigura-operated fuel tanker in the Red Sea and as Russian refined products exports are set to fall as several refineries are under repair after drone attacks. This uplift in oil prices drove the price of Indian oil companies higher today.

Oil-linked stocks, including explorers Oil India and ONGC, rose on Monday on the back of a rise in benchmark crude oil prices amid supply disruption-related worries following a missile strike on a Trafigura-operated fuel tanker in the Red Sea.

Since Reliance is a major private player in the Indian upstream oil market soaring oil prices have likely contributed to the rally in Reliance shares in today's intraday trading. Other oil stocks that traded higher today include ONGC and Oil India, both upstream oil companies. At one point ONGC was the top gainer in the Nifty 50 pack, up over 7%, while Oil India shares were up 3.24% at Rs 415.95 per share at 12:22 pm IST.

Reliance Industries Q3FY24 results:

The Mukesh Ambani-led energy-to-telecom conglomerate reported a 9.3% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 17,265 crore. Net profit for the Mukesh Ambani-led conglomerate fell 0.74% sequentially to Rs 17,265 crore for the October-December period.

Reliance Retail delivered a Gross Revenue of Rs 83,063 crore for 3Q FY24, a growth of 22.8% YoY. This growth was driven by the Grocery, Fashion & Lifestyle, and Consumer Electronics businesses. RIL's quarterly EBITDA stood at Rs 44,678 crore, up 16.7% Y-o-Y, with growth across all businesses. Revenue from operations fell 2.98% to Rs 2.28 lakh crore, as compared with Rs 2.31 lakh crore.

In its second-quarter results, Reliance reported a 29.7% growth in profit and a marginal increase in revenues. The company clocked a 29.7% YoY rise in consolidated net profit to Rs 19,878 crore for the September 2023 quarter.

RIL's Oil & Gas Segment Q3FY24 performance:

• Reliance's Oil & Gas segment quarterly revenues jumped 50.2% to Rs 6,719 crore mainly on account of higher volumes partly offset by lower price realisation from KG D6 Field.
• Oil & Gas EBITDA rose to a record high Rs 5,804 crore, up 49.6% Y-o-Y
• Block KG D6 is currently producing ~30 MMSCMD gas and ~ 21,000 Bbl of Oil / Condensate.

"The Oil & Gas segment posted its highest ever quarterly EBITDA. I am happy to note that KG D6 is now contributing 30% of India's gas production, fueling its transition towards a greener and cleaner tomorrow," said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.