Reliance Industries owned by Mukesh Ambani is one of the biggest companies of the world. It gives a quarterly net profit of almost 5,000 crores of rupees. I cannot understand this market where such a company’s stock has been an under performer for quite sometime. The market has to open its eyes some day and when it will open, you will see this stock rising up like anything.

Reliance Industries has planned to invest $5 billion in the next two years. It says that it has so much surplus cash sitting around that it has to be invested somewhere. It has already invested $1 billion in buying stakes in other companies and it wants to venture more into stake buying. Now imagine the returns that will start to show up when all that $6 billion has been invested into various companies. Now since the market believes in “growth factor”, like growth in revenues, then once those returns from the RIL’s investments starts to show up on it’s balance sheets, the growth factor will become visible and then see how everyone is going to jump onto RIL stock.

Currently the stock is trading at around 970 rupees per share and is consolidating at this level for a few days now. It looks like it has formed a nice base around 970 and is most likely to go up from this level. I would suggest any investor to start purchasing around these levels and hold onto their investment for a longer term. The stock is bound to outperform in future. Nothing can stop this giant from outperforming the market, let the people open their eyes.

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