Billions of dollars in RIL stock are being traded on the market every day, and it is only a matter of months before Indian business magnate Mukesh Ambani becomes the world's fifth richest person. With an estimated net worth of $81 billion, he would surpass Facebook founder Mark Zuckerberg and luxury fashion designer Bernard Arnault.
Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), is expected to become the world's second wealthiest person by the end of 2021. RIL's stock prices are rising quickly and looking at its potential future, it won't be long before Ambani surpasses Mark Zuckerberg as the fifth richest person in the world with a fortune of $81 billion. Arnault will then fall behind him due to his stake in LVMH Moet Hennessy Louis Vuitton - one of the largest luxury goods manufacturers in the world.
According to the Bloomberg Billionaire Index, Facebook founder Mark Zuckerberg's net worth is estimated at $85 billion while L'Oreal boss Bernard Arnault's holdings are valued at $112 billion. And although INCsun CEO Mukesh Ambani is only marginally wealthier with a net worth of $47 billion, he has recently been gaining ground on Zuckerberg as
Rephrase In 2020, RIL's market-cap surged by 49.8%, or Rs 4.77 lakh crore, from its value of Rs 9.59 lakh crore as of December 31st, 2019. In comparison, the S&P BSE Sensex Index lost 7.7% during this period and the combined market capitalization for all listed companies fell 5.3%.
As of December 31, 2014, RIL accounted for 2.9% of the total market capitalization of BSE-listed companies of Rs 98.36 trillion. Since then, the company's market capitalization has increased almost five-fold, from Rs 2.88 trillion. With the stock having more than doubled since its March 2020 low, RIL has strengthened its position in the S&P BSE Sensex, where the meter now accounts for nearly 16.7% of the index's weight. At the beginning of CY20, the Sensex weight was 10.8%
Despite its recent run-up, BNP Paribas analysts believe that RIL still has a lot of momentum in terms of sales in its retail business and potential sales in the retail sector. oil and chemical (O2C), even at low prices.
"We believe that FY22 will see a rebound in the refining/chemicals segment, which will help generate revenue as global growth stabilizes. We expect FY22 to accelerate soft of $9.5 / barrel and increase for FY23 as, after the transition from FY22, it is expected that the growth will return. for both gasoline and jet fuel. Chemicals business should improve in early FY22 and as the global economy recovers, expansion should pick up again,” Amit Pramod Shah, industry analyst at BNP Paribas wrote in a July 24 note, while maintaining target price. and Rs 2,317.
RIL stock added Rs 8.80 (down 0.41%) to close at Rs 2,154.95 and rescued the Nifty, which lost 62.35 points (down 0.56%) to close at 11,131.80 on Monday. Two weeks ago, when RIL's general meeting was held on July 15, Ambani was ranked eighth in the Bloomberg Billionaires Index, a daily ranking of the world's richest people. Within 12 days, his rank improved three levels to reach level five. Following its announcement to make RIL a debt-free company ahead of its first FY21 commitment by selling nearly 33% stake in Jio Platforms, RIL is on a steady upward trajectory. RIL stock is trading at Rs 1,950 level, gaining 10.25% in 8 trading sessions. According to market watchers, sustainable profits from RIL may continue to follow the easy financial position, high market capitalization and the listing of RIL's Jio platforms in the US market. This development will help Ambani faster than his closest rivals Arnault (now in third place with $112 billion) and Microsoft's Bill Gates (in second place with $113 billion) and reach the position the second one next year. However, he still has a long way to go to reach Amazon's Jeff Bezos, the richest man in the world at $179 billion.
On Monday, at the end of trading hours, RIL's stock hit an earlier hit again. Its market capitalization reached Rs 14.38 lakh crore and accounted for nearly 9.8% of the total market capitalization of BSE listed companies of Rs 147.23 Lakh crore. It is a characteristic of large conglomerates that dominate the market not only in the market but also in the turnover market and many investors are attracted to it. Remembering such an event, sources said that in the first decade of 2000, Samsung reached the top of the South Korean stock market, where it has 15% of the total market value of the Seoul Stock Exchange.
Analysts say there is one more reason why RIL's growth will continue, as Indian MFs hold RIL shares. The stock holds about 14% weightage in the benchmark, while India's MF and RIL's total is less than 10%. "Indian MFs will raise their stake by 4% in line with RIL's weighting," the analysts said. It will also bring RIL products further north, helping Ambani become the second richest person in the world.
Sources : Outlook India
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