Home / Markets / News / RIL not FAANG-like yet as O2C, telecom make up 70% of value: Edelweiss

RIL not FAANG-like yet as O2C, telecom make up 70% of value: Edelweiss

It downgrades stock from 'buy' to 'hold'; CLSA, too, lowers rating

Premium

The American technology giants comprising the FAANG stocks have a combined market capitalisation of $5 trillion

4 min read Last Updated : Jul 29 2020 | 1:32 AM IST

Shares of Reliance Industries (RIL) have been on a tear over the last few months. This has driven up the valuation for the stock. To justify these high valuations many on the Street have started to club RIL with so-called FAANG stocks — an acronym for Facebook, Amazon, Apple, Netflix, and Alphabet (Google).

The American technology giants comprising the FAANG stocks have a combined market capitalisation (m-cap) of $5 trillion. These stocks have seen a huge surge in their valuations and enjoy price-to-earnings (P/E) multiple much higher than the market.

RIL, too, has diversified from pure-play oil-to-chemical (O2C) business to new-age digital

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in