RIL shares show largest growth in 6 years after publishing strong financial results

The stock market witnessed a powerful surge in activity on Monday, and one of the main reasons for this was the performance of Reliance Industries shares, the country's largest company, whose stocks are showing significant growth and generating profits for investors.

Reliance shares rose by more than 7%, and investors who invested in Mukesh Ambani's company in just a few minutes earned over 100 billion rupees.

Reliance Industries shares, owned by Mukesh Ambani, began moving at a rocket-like speed on the first working day of the week. According to the updated RIL Stock Price, on Friday when the market closed last week, the shares were trading at 1164.90 rupees, and on Monday they opened with a sharp jump to 1228 rupees. Shortly after opening, trading reached the mark of 1252 rupees.

Regarding the increase in investor capital due to this sharp rise in Reliance shares, it should be noted that the company's capitalization (RIL Market Cap) at the time of closing last Friday was 15.74 trillion rupees. By the time the news was published on Monday, it had reached 16.97 trillion rupees. Thus, in a short period of trading, investors gained a substantial profit of 1.18 trillion rupees.

The main reason for the sudden and strong rise in Reliance shares is the impressive financial results of the company for the second quarter of the fiscal year 27. During the period from July to September, the company demonstrated excellent performance thanks to growth in the petrochemical (O2C), digital services, and retail segments. Reliance's consolidated revenue grew by 28% year-on-year, reaching a record 3.62 trillion rupees, and the EBITDA indicator increased by 24%, amounting to 62,409 crore rupees. Reliance's net profit increased by 34%, reaching 29,550 crore rupees.

The second reason is the positive forecast from brokerage houses following the announcement of Reliance Industries' strong financial results. These brokers maintained a 'Buy' rating (Reliance Share Buy Rating) for Reliance shares. More than a dozen brokers, including Goldman Sachs, Citi, Jefferies, and Nomura, predict good growth for RIL shares over the next 12 months. Goldman Sachs set a target price for RIL at 1840 rupees, suggesting a potential growth of 58%.

Shares of Jio Platforms, owned by Mukesh Ambani, successfully debuted in the market. Following an impressive listing day, Jio Platforms shares continued to rise on Thursday, showing a significant surge.

Not only did Ambani's shares demonstrate growth, but Piramal Pharma shares, the company of Mukesh Ambani's in-laws, also showed a sharp jump. While Jio grew by over 16% at its listing, it continued to rise on Thursday, bringing returns to investors.

Looking at the dynamics of Jio Platforms shares on the second day after going public, it is worth noting that they debuted in the market with a gain of 21 percent. By the close of trading, this figure exceeded 25%, reaching the mark of 1419 rupees. On Thursday, strong trading was also observed; the shares opened at 1445.90 rupees and quickly rose to 1489.70 rupees.

While Mukesh Ambani's Reliance Industries shares traded sluggishly after the Jio Platforms listing, Piramal Pharma shares, the company of Mukesh Ambani's in-laws, looked like a rocket. These pharmaceutical shares closed at 230.60 rupees, which is 16 percent higher than the previous closing on October 27, when the price was 199.75 rupees. On Wednesday, Piramal Pharma shares soared, and on Thursday, they maintained high momentum, although the growth rate was slightly slower compared to the previous close, trading with a rise of about one and a half percent at 239.54 rupees.

The significant growth of Piramal Pharma shares over two days led to an increase in the company's market capitalization by approximately 18 percent. The level of 239.54 rupees on Thursday was the highest in 52 weeks. As of the time of writing, Piramal Pharma's market capitalization reached 31,060 crore rupees. Over the last six months, this share of Mukesh Ambani's in-laws has grown by 47 percent.

Mukesh Ambani's daughter and Nita Ambani's daughter, Isha Ambani, married into the Piramal family on December 12, 2018, to Anand Piramal. Her father-in-law is Ajay Piramal, who heads the Piramal Group, which is among the country's major corporate dynasties. Ajay Piramal is considered one of the prominent industrialists. His company, Piramal Enterprises, operates in pharmaceuticals, healthcare, and financial services. The Piramal Group's branches are present in 30 countries worldwide. Piramal began his business career in the textile industry in 1977 at the age of just 22 and gained particular fame in the pharmaceutical sector.

Jio Platforms, owned by Mukesh Ambani, continues to set records since its IPO launch. After the IPO was fully subscribed just 100 minutes after opening, the company secured the second position in the country by market capitalization on the stock market.

It is worth noting that Reliance Industries of Mukesh Ambani still holds the first place on this list. On Wednesday, Jio Platforms shares successfully debuted on the stock exchange with a 21 percent premium, yielding investors a profit of about 3000 rupees per lot.

Shares of the digital service company Jio Platforms, backed by Reliance Industries of Mukesh Ambani, opened on the stock exchange with a premium of over 21.40% compared to the IPO price of 1119 rupees. The debut occurred at 1358 rupees per share. As a result, in terms of market capitalization, the company became the second most significant in the country, reaching a valuation of 1,250,586.39 crore rupees.

The Jio Platforms IPO set several records since its launch. It was fully subscribed in just 100 minutes after opening to retail investors. Furthermore, the initial public offering (IPO) amounting to 30,213 crore rupees was subscribed 22.19 times. The total demand for the public offering and the placement for anchor investors exceeded 7.4 lakh crore rupees, and the number of applications reached 1.39 crore, which is a world record. Consequently, the company became the largest telecommunications company in the country.

It should be recalled that Reliance Industries of Mukesh Ambani has long dominated the list of the country's most valuable companies, with its market capitalization at around 16 lakh crore rupees. In Jio Platforms, which listed on the stock exchange on Wednesday, Reliance accounts for 66.4 percent.

The listing of Jio shares took place during a stock market downturn. On Wednesday, both the Sensex and Nifty indices showed a significant drop immediately after trading opened. The Bombay Stock Exchange's Sensex index fell by more than 700 points, and the National Stock Exchange's Nifty index slipped by more than 200 points. Nevertheless, despite the market chaos, the Jio Platforms IPO demonstrated its strength and generated profits for investors.