14
NEW DELHI: Reliance Industries reclaimed the coveted 100 $billion m-cap on Thursday.
The stock hit a lifetime high of Rs 1,090 apiece on BSE.
At 11:55 am, shares of the company were trading at Rs 1,085.25 apiece.
The m-cap figure stood at $99.92 billion.
The oil and gas-to-telecom behemoth had first crossed the $100-billion market-cap mark in October 2007 when the rupee was at 39.5 to a dollar.
In rupee terms, the company’s market capitalisation then stood at Rs 4.11 lakh crore.
A majority of the brokerages, however, are not bullish on the stock.
Jefferies has downgraded the stock from 'hold' to 'underperform' with a target price of Rs 790.
It says, "Reliance's Ebitda may double to $20 billion by FY22/23E, but at $123 billion in EV, much of that appears baked in."
"Earnings may falter too; the IGCC (integrated gasification combined cycle) is yet to start, downstream margins may soften and the telecom ramp-up may not be as smooth as what the $46 billion already priced in as telecom EV presumes," the brokerage noted.
Kotak Securities noted that uncertainty remains on standalone capital WIP and Jio’s operating cost capitalisation.
It has 'reduce' rating on the stock with a target price of Rs 930.
CLSA has a 'buy' on the stock with a target price of Rs 916.45.
With its wide fibre network, Jio could aim at 10 million subscribers in three years.
Bulk of these may come from market share gains from existing DSL and ethernet players.
This would add Rs 40 billion to Ebitda and $5 billion to the valuation, the brokerage added.
On April 23 this year, IT major TCS achieved the prestigious milestone of becoming first Indian listed IT company to cross $100 billion m-cap.
