100 Per Cent Jump in Net Profit: Reliance-Group Debt-Free Company Incorporates a New Subsidiary for Automobiles & Related Activities
The stock is up by 72.50 per cent from its 52-week low of Rs 143.70 per share.
On Thursday, shares of Reliance Group infra stock – Reliance Infrastructure Ltd plunged 3.80 per cent to Rs 247.90 per share from its previous closing of Rs 257.70 with an intraday high of Rs 258.45 and an intraday low of Rs 245.10. The stock’s 52-week high is Rs 350.90 and its 52-week low is Rs 143.70.
Reliance Infrastructure Limited announces the incorporation of a new wholly owned subsidiary, Reliance Clean EV Private Limited (RCEVPL), by its subsidiary, Reliance Velocity Limited (RVL). RCEVPL, incorporated on November 20, 2024, has an authorized and paid-up share capital of Rs 1,00,000 and will primarily focus on manufacturing and dealing in vehicles and components for transportation and conveyance, utilizing various fuel types. This incorporation does not constitute a related party transaction and requires no governmental or regulatory approvals.
Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defence manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro and various airport developments. Reliance Power is a leading power generation company in India with a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh—currently the largest integrated thermal power plant in the world.
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According to Quarterly Results, the net sales increased by 67 per cent to Rs 359.7 crore and net profit increased by 101 per cent to Rs 69.8 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 75 per cent to Rs 707.7 crore and net profit increased by 100 per cent to Rs 136 crore in H1FY25 compared to H1FY24.
Earlier, Reliance Infrastructure's Dhirubhai Ambani Defence City (DADC) in Ratnagiri, Maharashtra, is a significant Rs 10,000 crore project aimed at manufacturing explosives, ammunition, and small arms. Spread across 1000 acres, DADC will be India's largest private-sector defence project, potentially partnering with six global defence giants. The project will cater to both domestic and international markets, producing a wide range of ammunition, including advanced TGMs. With government licenses and a successful track record in defence exports, DADC will bolster India's defence capabilities.
The company has a market cap of over Rs 9,800 crore. The stock is up by 72.50 per cent from its 52-week low of Rs 143.70 per share. The promoters of the company own 16.50 per cent, FIIs own 8.38 per cent, DIIs own 1.40 per cent, the Government own 0.02 per cent and the public & others own the rest of the stake i.e., 73.70 per cent as of September 2024.
Disclaimer: The article is for informational purposes only and not investment advice.