Though the deleveraging news
has helped the stock cross the record market capitalisation of Rs 11 trillion, experts say it has more legs to run as investors chase digital growth options. Sanjiv Bhasin, director at IIFL, says: “Globally, many people are unwilling to re-invest in China. So, India would see more flow, where RIL stands out given the improved return on equity and strong growth expectations.” He expects the stock to hit the Rs 2,000 per share level by March 2021, which denotes an upside of 14 per cent from the current levels.
RIL stands at number 57th position in the overall market capitalisation ranking of global listed companies. It ranked at 104 position as on March 24, 2020, Bloomberg data shows.
On Friday, Mukesh Ambani announced that Reliance Industries
had become net debt-free after raising a record Rs 1.69 trillion from global investors and a rights issue in under two months.
The company raised Rs 1.15 trillion from global tech investors by selling little less than a quarter of the firm's digital arm, Jio Platforms, and another Rs 53,124.20 crore through a rights issue in the past 58 days.
Jio Platforms has raised Rs 1.15 trillion from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF.
Analysts at Goldman Sachs believe the initial growth (operating profit growth to increase by 3 times over FY20-25) will be driven by margin improvement and private label contribution in the brick and mortar grocery business. It expects gains from JioMart to kick in after being a drag on profitability in the FY21-23 period as the company moves from being an offline market player (11,000 stores) to an integrated offline to online player powered by an e-commerce platform. Gaurav Dua, head capital market strategy at Sharekhan, believes that RIL will repeat the success story of Jio in the retail business as well. Further, given JioMart’s unique business model, it is well placed to face competition from online players, such as Amazon.