Reliance Industries shares jump 5% following a 7.3% net profit surge to ₹18,540 crore

Reliance Industries Limited, one of India’s most influential conglomerates, witnessed a significant boost in its stock price, rising nearly 5% in intraday trading. This surge follows the company’s announcement of a 7.3% increase in net profit, totalling an impressive ₹18,540 crore for the latest quarter. 

Investors and analysts attribute this growth to Reliance’s strong performance across its diverse business segments, reinforcing its position as a cornerstone in share market investment strategies.

Key indicators highlight growth and stability

Reliance Industries’ stock is currently trading at ₹1,299, marking a notable upward trend. With a market capitalisation of ₹17,58,261 crore, the company remains a heavyweight in the Indian share market. Over the past year, its stock price has fluctuated between a high of ₹1,609 and a low of ₹1,202. This movement reflects investor confidence despite market volatility, making it an attractive choice for those exploring share market investment opportunities.

Key financial metrics further underscore the company’s strength. Reliance’s price-to-earnings (P/E) ratio stands at 25.4, while its book value is ₹606. Although its dividend yield is relatively modest at 0.36%, the company’s consistent revenue generation and strategic investments bolster its appeal in the share market.

Debt reduction and performance challenges

One of the standout achievements for Reliance Industries has been its successful debt reduction efforts. This move has significantly improved its financial health and positioned the company for long-term growth. 

However, analysts point out certain challenges, including a relatively low return on equity (ROE) of 9.25% and a return on capital employed (ROCE) of 9.61%. Despite these metrics, Reliance’s diversified business model and ongoing investments in technology and energy provide strong prospects for sustained growth in the share market.

Analyst perspectives on Reliance Industries

Analysts remain optimistic about Reliance’s future performance. Its ability to maintain robust profit margins amidst economic fluctuations is seen as a key factor driving its share market investment appeal. 

Brokerage firms highlight the company’s strategic focus on expanding its digital and energy ventures, which are expected to generate significant long-term returns. As Reliance continues to innovate and adapt, its stock remains a preferred choice for both retail and institutional investors.

A promising outlook for share market investors

Reliance Industries’ remarkable 7.3% profit growth and strategic financial moves underscore its resilience and potential in the Indian share market. As of January 17, 2025, its stock is trading at ₹1,303, reflecting a 2.73% increase by 12:14 PM. For those seeking stable and growth-oriented opportunities in share market investment, Reliance Industries stands out as a compelling choice.

Whether you are an experienced investor or just beginning your share market investment journey, Reliance Industries offers a blend of stability and growth potential. Consider adding Reliance to your portfolio to capitalise on its strong performance and promising future. Stay informed, make strategic decisions, and invest confidently in a company that continues to lead across industries.