Mukesh Ambani's RIL becomes sixth largest global energy firm by market cap

RIL hit a market cap of $130.76 billion on Wednesday compared with BP Plc’s $128 billion
In early deals today, shares of RIL traded at ₹1,466 on the BSE, having gained over 31% so far this year
 Mukesh Ambani led-Reliance Industries Ltd (RIL) has pipped British oil major BP Plc in terms of market capitalisation to become the world’s sixth largest energy entity. But the rise in market cap is largely thanks to Indian conglomerate’s retail and telecom businesses.
RIL hit a market cap of $130.76 billion on Wednesday compared with BP Plc’s $128 billion. In early deals today, shares of RIL traded at ₹1,466 on the BSE, having gained over 31% so far this year.
On Tuesday, shares of BP Plc, closed at $6.33, down 3.8%--the most in four weeks--in London trade, after dashing investor hopes of a higher dividend this year. The company’s market capitalization stood at $128.86 billion. Year to date, the BP Plc stock has declined 0.7%.
BP Plc reported adjusted net income of $2.25 billion for the September quarter, exceeding average analyst estimate of $1.77 billion. This compares with a profit of $3.84 billion a year earlier, when BP decided to buy a $10.5 billion package of US shale assets in cash rather than shares because it was confident oil prices would stay high.
Globally, in the listed universe, Exxon Mobil Corp is the biggest oil and gas firm, with a market cap of $290.42 billion, followed by Royal Dutch Shell Plc at $238.15 billion, Chevron Corp at $224.92 billion, Petrochina Co Ltd with $149.20 billion in market cap, and Total SA at $141.74 billion.
However, the world’s largest energy entity is Saudi Aramco, which pumps about 10% of the world's crude and emerged as the most profitable company in 2018. Saudi Aramco beat Exxon Mobil Corp in terms of earnings. The energy giant plans to launch its initial public offering in November.
BP is RIL's partner in its exploration and production ventures in India. Both companies also operate an equal joint venture called India Gas Solutions, and will partner to set up fuel retail outlets.

RIL rallied over 20% since last AGM: Investors eye GigaFiber, Jio Phone 3 launch

The stock rallied from Rs 964 recorded on 5th July 2018 when RIL held its 41st AGM, to Rs 1,162 registered on Friday, 9 August, which translates into a rally of over 20 percent.

India’s second-largest company by market capitalisation, Reliance Industries will hold its 42nd annual general meeting (AGM) on Monday, August 12 in Mumbai which would be eyed by both investors as well as analyst community

The stock rallied from Rs 964 recorded on 5th July 2018 when RIL held its 41st AGM, to Rs 1,162 registered on Friday, 9 August, which translates into a rally of over 20 percent.
Investors could see the launch of Jio Phone 3, commercial rollout and pricing of Jio’s broadband service GigaFiber, and the triple play plan for GigaFiber that bundles broadband, landline as well as television services, are also expected to be announced at the RIL AGM, CNBC-TV18 said quoting market sources.

Jio Phone 2 was launched at the last AGM and carried a price tag of Rs 2,999. Its next iteration, Jio Phone 3, is expected to be priced at Rs 4,500, the report added.

Jio Phone 2 was launched at the last AGM and carried a price tag of Rs 2,999. Its next iteration, Jio Phone 3, is expected to be priced at Rs 4,500, the report added

AK Prabhakar, Head of Research at IDBI Capital expects the launch of triple play plan for GigaFiber which bundles broadband with DTH as well as a telephone in one package. Pricing is something which will be watched by the D-Street.

The pricing for the broadband plans is expected to be in line with peers but RIL will sweeten the deal by making it a triple play —a combination of broadband-landline-TV OTT service. A base price of ranging between Rs 500-600 for GigaFiber is expected, according to CNBC-TV18 report.

Apart from Jio broadband rollout as well as the launch of Jio Phone 3, some analysts will also keep a close eye on the deleveraging plan, expansion on the retail front, as well as any important development on the refining front.
AK Prabhakar, Head of Research at IDBI Capital expects the launch of triple play plan for GigaFiber which bundles broadband with DTH as well as a telephone in one package. Pricing is something which will be watched by the D-Street.

The pricing for the broadband plans is expected to be in line with peers but RIL will sweeten the deal by making it a triple play —a combination of broadband-landline-TV OTT service. A base price of ranging between Rs 500-600 for GigaFiber is expected, according to CNBC-TV18 report.

"Focus will be more on its retail, telecom business expansion plan, and fund mobilisation. Also, towards its oil refining business front some important announcement is expected," Sanjeev Jain, VP Equity Research at Sunness Capital India Pvt Ltd, told Moneycontrol.

Last week, Credit Suisse said that the company is expected to remain free-cash-flow negative over FY20-21, just as it has been for the last six years. The report further added that liabilities have dramatically gone up to $65 billion in FY19 from $19 billion in FY15.

Reliance Industries, the country's second largest company by market capitalisation, reported a consolidated profit after tax of Rs 10,104 crore for the June quarter, up 6.8 percent from a year ago. The net profit also beat a poll of analysts which had pegged the profits at Rs 9,852 crore.

“Investors would watch out for some news from RIL on how it can substantially deleverage its balance sheet through either induction of a partner in the refinery business because there were some talks of a deal with Saudi Aramco,” Ajay Bodke CEO- PMS Prabhudas Lilladher told Moneycontrol.

The analyst would watch out for a medium-term plan for monetizing their stake in the refinery, retail, fiber, and tower business because the company has become net debt company from a net cash company amid expansion plans.

The second thing that investors would watch out for would be the return ratios, said Bodke. He further explained that with increased contribution of consumer-focused business like retail and telecom – investors would expect the return ratio of the company to move northwards to just premium valuations compared to pure-play refining and Petro companies.