At Wednesday’s closing price, Coal India’s market capitalisation stands at Rs2.51 lakh crore ($55 billion), whereas that of Reliance was at Rs2.47 lakh crore ($54 billion).
RIL has been under-performing the markets over several months mainly as of disappointment over the company’s incapability to ramp up gas output at its famed KG-D6 block. Revenues from its oil and gas exploration account for just 5.7 per cent of its gross turnover of Rs 276,371 crore in 2010-11, although that doesn’t appear to have weighed with investors at all.
Coal India, the nation’s largest coal producer, by comparison, is enjoying a good run as development in the power sector fuels demand for coal. Since its IPO last October, Coal India’s stock price has gained 62% in a period when the benchmark Sensex itself has lost 19%.
Former this month, the miner was integrated among the 30 key stocks that include the Sensex. Reliance Infrastructure and Reliance Communications, controlled by Mukesh’s younger sibling Anil, were dropped from the benchmark index.