Reliance-Group Debt-Free Stock Hit Upper Circuit After Announcing a 100 Per Cent Jump In Net Profit
The stock is up by 89 per cent from its 52-week low of Rs 143.70 per share.
On Monday, shares of Reliance Group infra stock – Reliance Infrastructure Ltd hit a 5 per cent upper circuit to Rs 271.30 per share from its previous closing of Rs 258.40. The stock’s 52-week high is Rs 350.90 and its 52-week low is Rs 143.70.
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.
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.
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Earlier, Reliance Infrastructure is set to make a significant stride in India's defence sector with its ambitious Dhirubhai Ambani Defence City (DADC) project in Ratnagiri, Maharashtra. This greenfield project, estimated to cost up to Rs 10,000 crore over the next decade, will encompass the manufacturing of explosives, ammunition, and small arms. Spread across 1000 acres of land, DADC aims to become India's largest private-sector defence project, potentially partnering with six global defence giants. The project will cater to both domestic and international markets, with a focus on producing a wide range of ammunition, including small, medium, and large calibers, as well as advanced terminally guided munitions (TGMs). Reliance Infrastructure's existing joint ventures, DRAL and TRDS, have a successful track record of exporting 100% of their production. With government licenses in hand and a strong foundation in the defence sector, Reliance Infrastructure's DADC project signifies a major step towards bolstering India's defence capabilities.
The company has a market cap of over Rs 10,000 crore. The stock is up by 89 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.