Reliance Industries shares gain after subsidiary acquires stake in HAGI

Shares of India’s biggest private company Reliance Industries surged up to  1.74 per cent at Rs 1,227 a piece on the BSE in Monday’s intraday trade. This came after Reliance Industries wholly owned subsidiary, Reliance Digital Health on December 20, 2024 entered into definitive agreements to acquire a 45 per cent equity stake on a fully diluted basis in Health Alliance Group Inc. for an aggregate consideration of $10 million. 

 

HAGI is a US-based healthcare company incorporated on December 21, 2023 as a Delaware corporation. It specializes in designing technology driven solutions for the underserved in the United States, India and rest of the world, Reliance Industries said in an exchange filing on Saturday. 

 

HAGI operates at the intersection of healthcare, information technology and innovation. “The investment will empower RDHL to develop a virtual diagnostic and care platform, expanding access to healthcare for underserved communities,” the company said. 

 

Financially, Reliance Industries reported a 4.8 per cent year-on-year (YoY) decline in consolidated profit attributable to owners, amounting to Rs 16,563 crore for the July-September quarter (Q2) of FY2024-25. Consolidated revenue for the quarter stood at Rs 2.31 trillion, marginally lower than the same period last year.  

 

This marked the third consecutive quarter of YoY profit decline, primarily driven by a weaker oil-to-chemicals (O2C) business. Despite higher volumes and increased domestic placement of products, revenue from the O2C segment showed limited growth, while the retail business experienced a 3.5 per cent YoY decline in revenue. The oil and gas division reported a 6 per cent drop in revenue compared to the previous year. Meanwhile, other income increased 26.9 per cent to Rs 4,876 crore during the quarter.

 

Meanwhile, on the equities side, Reliance Industries stock has underperformed the market, as in the last six months it has slipped 16 per cent, while falling 5 per cent in the last one year. In comparison BSE Sensex has risen 2 per cent in the last six months and 10 per cent in a year. 

 

The company has a total market capitalisation of Rs 16.45 trillion. Its shares are trading at a price to earnings multiple of 44.67  times and at an earning per share of Rs 27. 

 

At 1:05 PM; the shares of the company were up 0.98 per cent at Rs 1217.85 a piece. By comparison, the BSE Sensex was trading 0.49 per cent higher at 78,421.62 level.