Reliance’s market capitalisation may increase to $100 billion: Morgan Stanley

New Delhi. The country’s leading company Reliance Industries can increase its market capitalization by up to $ 100 billion in its fourth monetization round of this century. Morgan Stanley has made this estimate in a report. Reliance Industries, which is active in businesses ranging from oil to telecommunications, has given two to three times the value to its shareholders in the monetization cycles conducted in the last three decades. During this period, the company’s market capitalization has increased by more than $ 60 billion in every decade. RIL is in its fourth monetization round of this century.

Brokerage firm Morgan Stanley said, Monetization 4.0 is different, it is being supported by business growth, domestic demand and less competition. RIL’s fourth monetization round since 1997 should increase its market capitalization by US$100 billion. According to the report, the main reason for the increase in capitalization has been Reliance’s increase in market share, complete integration and its ability to perform above investor expectations every time the company redesigns its business.

This monetisation comes after a $60 billion investment in 2021-23, which was the shortest investment cycle for RIL since the 1990s. Morgan Stanley expects Reliance Industries’ earnings to grow at an annual rate of 12 per cent during FY23-24 to 2025-26, with earnings from all segments accelerating. “Reliance Industries has been a reinvention story over the past decade. It has seen significant market capitalisation changes after delivering new revenue streams such as new energy, higher telecom charges, margins of chemical business,” the brokerage firm said.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.



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