The shares of the Small-Cap stock specializing in engineering and construction (E&C) services, particularly for power, roads, metro rail, and other infrastructure projects, hit a 5 percent upper circuit after securing a major Rs. 600 crore export order from Germany’s Rheinmetall.
With a market capitalization of Rs. 16,005.68 crores on Wednesday, the shares of Reliance Infrastructure Limited hit a 5 percent upper circuit, making a high of Rs. 404.05 per share compared to its previous closing price of Rs. 384.85 per share.
Reliance Infrastructure Limited’s subsidiary, Reliance Defence, has secured a significant ammunition export order worth Rs. 600 crore from Rheinmetall, a leading German defence manufacturer. This order, one of the largest in the high-tech ammunition sector, reinforces Reliance Defence’s strategic partnership with Rheinmetall, highlighting the company’s growing role in the global defence supply chain, particularly in Europe.
The deal also aligns with India’s ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives, as Reliance Defence focuses on strengthening indigenous manufacturing capabilities. With this move, Reliance Defence aims to become one of India’s top three defence exporters.
Rheinmetall AG is one of the world’s largest defence conglomerates based in Germany, has a market value of over EUR 80 billion. In 2024, it generated EUR 9.8 billion in revenue from its operations across 171 locations worldwide. Rheinmetall is a top player in areas like armoured vehicles, infantry fighting vehicles, air defence systems, and advanced ammunition technology.
Anil D. Ambani, Founder Chairman, Reliance Group, said: “The strategic partnership with Rheinmetall brings cutting-edge capabilities to India and represents a defining milestone for the country’s private defence manufacturing sector. Guided by the vision of Aatmanirbhar Bharat, our ambition is to position Reliance Defence among the world’s Top 3 defence exporters. Through this, we aim to enable India not only to meet its domestic defence needs with confidence, but also to establish itself as a trusted force in the global defence supply chain.”
Financials & Others
The company’s revenue declined by 10.7 percent from Rs. 4,783.3 crore to Rs. 4,268.05 crore in Q4FY24-25. Meanwhile, the Net loss from Rs. 220.58 crore turned to a profit of Rs. 4,387.08 crore during the same period.
The company’s P/E ratio stands at 3.97, significantly lower than the industry average of 32.96, indicating potential undervaluation. Additionally, its debt-to-equity ratio is low at 0.44, reflecting minimal financial leverage.
Reliance Infrastructure Limited, a part of the Reliance Group, was founded in 1929 and provides engineering and construction services in sectors like power, roads, metro rail, and infrastructure.
The company also handles the implementation, operation, and maintenance of various defence and infrastructure projects through special-purpose vehicles. Notably, it completed the Mumbai Metro Line one project on a build, own, operate, and transfer basis and is a key player in the energy sector across its value chain.
Written by Sridhar J
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