NSE Symbol: RELBANK | BSE Code: 533888
Reliance Industries Limited Stocks Trends in 2018:
On January 2, 2018, the Reliance Industries share price was Rs.913 on the NSE. In January, the stock price increased up by 5% to touch the Rs.990 mark on January 23. However, the prices were gradually declined and consequently, the scrip dipped to Rs.880 region in the early February.
The Reliance share price quickly recovered, and by mid-Feb, the share price ascended back into the Rs.900 territory. For rest of the month, the shares increased above Rs.920. During March, the shares dropped marginally although the price still managed to stay buoyant at some levels above Rs.900.
In April, the Reliance share price increased once again, and the scrip gained a 10% increase over the month to reach the Rs.980 mark. The amount didn’t change considerably until the first half of May month, with the shares maintaining the appreciation above Rs.980. In the second half of the May, the prices dropped once again and followed another rise in June.
In June, the shares crossed the critical mark of Rs.1,000. In the same month, the company declared the final dividend of 60%. Through the entire term of July and August, the shares incurred a dramatic rise in price. The scrip increased to 20% in July with the closing stock price being Rs.1,186 on the National Stock Exchange on July,31st.
The prices continued to increase in August, and eventually, the scrip reached a 52-week high at Rs.1,329 on the NSE. As of early September, the stocks were trading at Rs.1,230.
Recent Performance of Reliance Industry Limited:
The Reliance has recorded strong growth in the consolidated results of its Q3 in FY18. The income for the third quarter was at Rs.1,09,905 crore - which was inclined by 8.6% from the last quarter and by 30.5% over the Q3 of FY17.
Similarly, the earnings before interest and taxes for the Q3 was at Rs.13,789 crore. It shows a 14.5% increase over the last quarter and a 44.8% increase over the third quarter of fiscal 2017. Correspondingly, the net profit for the same quarter was at Rs.9,423 crore.
The Retail segment, Jio, and petrochemicals were the profit drivers for the Q3. The EBIT for petrochemicals was above Rs.5,500 crore, while for Jio, it stood at Rs.1,440 crore. This impressive growth was witnessed in after the Q2 of commercial operations of Jio, where the gross revenue inclined by 12.7% over the last quarter.
The revenue increased dramatically to Rs.18,798 crore from Rs.8,688 crore in the third quarter of Fiscal 17 for the retail segment.
Operating profit during the same quarter also increased by 52% to a Rs.17,588 crore.
Similarly, Earnings per Share (EPS) of Reliance power share price for the same quarter has also increased by 25.2% concerning the third quarter of Fiscal 17, at Rs.16.
Information About Reliance Industries Ltd:
Reliance Industries Limited is based in Mumbai, India. The company has several businesses operations across the India which primarily deal in petrochemical refining, hydrocarbon production and exploration, marketing, textiles, mass media, retail, and telecommunications. Reliance Industries has been present for more than 40 years, and in that time, it has spread its network worldwide to become one of the most profitable companies across India. The company is also present on the list of Fortune Global 500, as of 2017. RIL is also the biggest exporter in the country, and responsible for 8% of the total merchandise exports of India.
History of the Reliance Industries Limited:
Dhirubhai Ambani co-founded the company with his sibling, Ramnikbhai Ambani, as Reliance Commercial Corporation or RCC in the year 1960. It started as a yarn trading business but soon expanded into the textile business, with Vimal eventually becoming a prominent brand in the later years. In 1977, the company generated an equity trend in India through its initial public offering (IPO). The IPO of RIL has been oversubscribed seven times. With the time, the company started to be known as RIL and diversified in other sectors such as energy and telecom. The construction of Jamnagar Refinery, which is the world’s largest crude oil refinery was done in the 90s.
RIL and Reliance Petroleum Limited were merged in early 2000, subsequently after the gas discovery in the Krishna Godavari Basin. Just after this discovery, RIL bought a stake majority in the Indian Petrochemical Corporation Limited(IPCL), which was later merged with the organization.
After establishing a strong position in the energy sector, the company expanded on to mass media, retail, and telecommunications, as seen today.
Management of the Company:
Mr. Mukesh Dhirubhai Ambani - Managing Director and Chairman
The chairman, MD and the largest shareholder of Reliance Infrastructure Limited are Mr.Mukesh Ambani who has been the board member since 1977. He is responsible for supervising the Jamnagar Refinery development along with the several other manufacturing facilities, which have amplified the petrochemicals manufacturing abilities of Reliance. He has led to the development, implementation, and expansion of the facilities of infrastructure and supply chain network in the retail sector. His efforts have helped Reliance on becoming a prominent name in the retail industry. He has also launched Reliance Jio, which became one of the most demanding networks across the country in a short span of time.
He did Chemical Engineering from the Institute of Chemical Technology, Mumbai, followed with an MBA from Stanford University, U.S.A. He has received several honors including 'Business Leader of the Year 2017' from Economic Times, ‘Entrepreneur of the Decade’ - from All India Management Association in 2013.
Why Invest in Reliance Industries Limited Shares?
The Reliance Industries Limited is a profitable business enterprise. In addition to making profits in refining, marketing, and petrochemicals segments over the years, the conglomerate has also started steady earnings in the organized retail sector. In this segment, 100% achievement in revenue from the last one year has witnessed the rapid expansion of Reliance.
Similarly, the Reliance Jio has also seen tremendous growth since its introduction in 2016. The customers of Reliance Jio is rapidly increasing due to the high-value plans. It is one of the rapidly growing digital service entity in the country. More investment from Reliance and external sources can be expected in this segment in the upcoming years.
At the same time, it is quite noteworthy that refining, petrochemicals, and oil-related activities still forms the core of the business for Reliance. Though the company generates revenues from other segments as well such as retail, media, and telecom but a massive chunk of its overall revenue is produced by the oil segment.
Reliance share presents itself as a viable investment option. Reliance is taken as a growth company into consideration, and many experts have a positive outlook on the profits of the company in the next few years. However, it is recommended that the investor research before investing in the company.
Stocks or Mutual Funds: Here is our recommendation
A lot of research and knowledge is required in stock market investments, and generally, they don't provide any tax benefits. Hence at mymoneykarma, we merely encourage our readers to invest in mutual funds. Investing in mutual funds doesn't need a lot of knowledge, and equity-linked mutual fund schemes also offer various tax benefits. Along with it mutual funds contain stocks from multiple companies, due to which they help in building a diversified portfolio.