Reliance Industries Ltd - Share Price and Detail Financial Report has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
8%
5 Years:
10%
3 Years:
24%
TTM:
7%
Compounded Profit Growth
10 Years:
13%
5 Years:
12%
3 Years:
16%
TTM:
7%
Stock Price CAGR
10 Years:
21%
5 Years:
18%
3 Years:
6%
1 Year:
20%
Return on Equity
10 Years:
10%
5 Years:
9%
3 Years:
9%
Last Year:
9%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
2,936
2,940
2,943
2,948
2,959
5,922
5,926
6,339
6,445
6,765
6,766
6,766
Reserves
179,119
195,747
215,556
228,608
260,750
287,584
381,186
442,827
693,727
772,720
709,106
786,715
Borrowings
107,219
138,761
168,251
194,714
217,475
239,843
307,714
355,133
278,962
319,158
451,664
458,991
Other Liabilities
73,083
91,395
117,736
172,727
225,618
277,924
302,804
358,716
340,931
399,979
438,346
502,576
Total Liabilities
362,357
428,843
504,486
598,997
706,802
811,273
997,630
1,163,015
1,320,065
1,498,622
1,605,882
1,755,048
Fixed Assets
133,487
141,417
156,458
184,910
198,526
403,885
398,374
532,658
541,258
627,798
724,805
779,985
CWIP
49,952
91,494
166,462
228,697
324,837
187,022
179,463
109,106
125,953
172,506
293,752
338,855
Investments
42,848
60,602
76,451
84,015
82,899
82,862
235,635
276,767
364,828
394,264
235,560
225,672
Other Assets
136,070
135,330
105,115
101,375
100,540
137,504
184,158
244,484
288,026
304,054
351,765
410,536
Total Assets
362,357
428,843
504,486
598,997
706,802
811,273
997,630
1,163,015
1,320,065
1,498,622
1,605,882
1,755,048
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
36,918
43,261
34,374
38,134
49,550
71,459
42,346
94,877
26,958
110,654
115,032
158,788
Cash from Investing Activity
-27,601
-73,070
-64,706
-36,186
-66,201
-68,192
-94,507
-72,497
-142,385
-109,162
-93,001
-113,581
Cash from Financing Activity
408
13,713
8,444
-3,210
8,617
-2,001
55,906
-2,541
101,904
17,289
10,455
-16,646
Net Cash Flow
9,725
-16,096
-21,888
-1,262
-8,034
1,266
3,745
19,839
-13,523
18,781
32,486
28,561
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
-74.00
-104.00
-131.00
-153.00
-171.00
-175.00
-223.00
-266.00
-198.00
-211.00
-309.00
-296.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Reliance Industries Ltd - Share Price and Detail Financial Report as of October 5, 2024 is: ₹2,972.78
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Reliance Industries Ltd - Share Price and Detail Financial Report is Undervalued by 7.20% compared to the current share price ₹2,773.00
Intrinsic Value of Reliance Industries Ltd - Share Price and Detail Financial Report as of October 5, 2024 is: ₹3,138.27
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Reliance Industries Ltd - Share Price and Detail Financial Report is Undervalued by 13.17% compared to the current share price ₹2,773.00
Last 5 Year EPS CAGR: 5.57%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -52.58, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -13.17, which is a positive sign.
The company has higher reserves (429,470.42 cr) compared to borrowings (269,823.75 cr), indicating strong financial stability.
The company has shown consistent growth in sales (553.15 cr) and profit (58.38 cr) over the years.
The stock has a low average ROCE of 9.83%, which may not be favorable.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Reliance Industries Ltd - Share Price and Detail Financial Report:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 8.77% (Industry Average ROE: 29.07%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 27.3 (Industry average Stock P/E: 12)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0.4
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Reliance Industries Ltd. is a Public Limited Listed company incorporated on 08/05/1973 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17110MH1973PLC019786 and registration number is 019786. Currently Company is involved in the business activities of Extraction of natural gas. Company’s Total Operating Revenue is Rs. 423703.00 Cr. and Equity Capital is Rs. 6765.00 Cr. for the Year ended 31/03/2022.
INDUSTRY
ADDRESS
CONTACT
Refineries
3rd Floor, Maker Chambers IV, Mumbai Maharashtra 400021
What is the latest fair value of Reliance Industries Ltd - Share Price and Detail Financial Report?
The latest fair value of Reliance Industries Ltd - Share Price and Detail Financial Report is ₹2972.78.
What is the Market Cap of Reliance Industries Ltd - Share Price and Detail Financial Report?
The Market Cap of Reliance Industries Ltd - Share Price and Detail Financial Report is 18,76,211 Cr..
What is the current Stock Price of Reliance Industries Ltd - Share Price and Detail Financial Report as on 05 October 2024?
The current stock price of Reliance Industries Ltd - Share Price and Detail Financial Report as on 05 October 2024 is ₹2,773.
What is the High / Low of Reliance Industries Ltd - Share Price and Detail Financial Report stocks in FY 2024?
In FY 2024, the High / Low of Reliance Industries Ltd - Share Price and Detail Financial Report stocks is 3,218/2,220.
What is the Stock P/E of Reliance Industries Ltd - Share Price and Detail Financial Report?
The Stock P/E of Reliance Industries Ltd - Share Price and Detail Financial Report is 27.3.
What is the Book Value of Reliance Industries Ltd - Share Price and Detail Financial Report?
The Book Value of Reliance Industries Ltd - Share Price and Detail Financial Report is 1,173.
What is the Dividend Yield of Reliance Industries Ltd - Share Price and Detail Financial Report?
The Dividend Yield of Reliance Industries Ltd - Share Price and Detail Financial Report is 0.36 %.
What is the ROCE of Reliance Industries Ltd - Share Price and Detail Financial Report?
The ROCE of Reliance Industries Ltd - Share Price and Detail Financial Report is 9.61 %.
What is the ROE of Reliance Industries Ltd - Share Price and Detail Financial Report?
The ROE of Reliance Industries Ltd - Share Price and Detail Financial Report is 9.25 %.
What is the Face Value of Reliance Industries Ltd - Share Price and Detail Financial Report?
The Face Value of Reliance Industries Ltd - Share Price and Detail Financial Report is 10.0.
Reliance Industries Ltd: A Comprehensive Overview
Reliance Industries Limited (RIL), led by Mukesh Ambani, is one of India’s largest and most diversified conglomerates. Its operations span a wide range of sectors, including oil and gas, digital services, retail, financial services, and more. In recent years, Reliance has transformed from being primarily a petrochemical and refining giant into a company with significant stakes in consumer-facing businesses like Reliance Jio and Reliance Retail. This article provides a fundamental analysis of the company, using the key areas that influence its performance.
Oil and Gas Sector: The Backbone of RIL’s Legacy Reliance’s roots lie in its exploration and production (E&P) of crude oil and natural gas, as well as refining and petrochemicals. The company operates the world’s largest oil refining complex in Jamnagar, Gujarat. Despite the strategic shift toward digital and consumer businesses, the oil and gas segment continues to be a crucial revenue driver.
The company is focused on converting its energy business into a cleaner, future-proof operation. The oil to chemicals (O2C) segment, which integrates refining and petrochemicals, is central to this strategy. The goal is to transform the company into a leader in the green energy space, while simultaneously maintaining its leadership in transportation fuels and petrochemicals. The performance of this sector is closely tied to global crude oil prices, which fluctuate based on geopolitical dynamics and supply-demand balances.
Digital Services: Reliance Jio’s Meteoric Rise Reliance Jio, the company’s foray into the digital services sector, has disrupted the Indian telecommunications landscape. Launched in 2016, Jio has rapidly amassed a massive customer base, primarily due to affordable data and innovative service offerings. By the end of the financial year 2023, Jio had over 450 million subscribers, making it the largest telecom operator in India by both subscriber base and revenue.
Beyond basic telecom services, Reliance Jio has expanded into fiber broadband, content delivery, and digital platforms, playing a critical role in India’s digital transformation. The company’s ambitious plans to introduce 5G services promise to further solidify its position in the digital services sector.
Retail: A Growing Consumer Behemoth Reliance Retail, the company’s retail arm, has become the largest player in India’s organized retail space. The business operates across multiple formats, including supermarkets, electronics, fashion, and e-commerce. The retail segment has consistently shown robust growth, benefiting from both the expanding customer base and its omnichannel approach that integrates physical stores with online platforms.
In the financial year 2023, Reliance Retail accounted for a significant portion of the company’s consolidated revenue. This segment’s rapid growth has been driven by increasing consumer spending, expansion into rural markets, and a focus on partnerships and acquisitions to bolster its offerings. The retail arm’s strategic investments in e-commerce, through platforms like JioMart, have given it a strong foothold in India’s growing digital shopping space.
Interest Rates and Financial Services In recent years, Reliance has begun to delve into the financial services sector, recognizing the vast opportunities presented by India’s growing financial markets. Through its subsidiary, Jio Financial Services (JFS), the company aims to tap into digital payments, insurance, and lending. Given India’s under-penetrated financial market, JFS is well-positioned for growth.
However, the company’s performance in this sector will also be influenced by prevailing interest rates. Rising rates tend to dampen borrowing and consumer spending, which could impact sectors like retail and digital services, as well as the cost of funding its ambitious expansion plans.
Oil to Chemicals (O2C) Transition Reliance’s oil to chemicals (O2C) business continues to be a key driver of profitability. By consolidating its refining and petrochemicals operations, the company has been able to increase efficiency and profitability. The O2C business is currently undergoing a significant transformation as the company seeks to reduce its reliance on fossil fuels and shift toward cleaner energy sources.
Reliance plans to repurpose its existing assets toward renewable energy sources such as hydrogen and solar. This shift is expected to not only mitigate the long-term risks associated with crude oil volatility but also position Reliance as a global leader in sustainable energy. The company is also investing in new technologies to capture carbon and reduce its emissions footprint, aligning with global sustainability trends.
Exploration and Production (E&P): A Steady Contributor Reliance’s exploration and production operations are relatively smaller in comparison to its refining and petrochemical segments but remain strategically important. The company’s major gas fields in the Krishna Godavari (KG-D6) basin have started yielding results, contributing to India’s domestic natural gas supply. The profitability of this segment is closely tied to international crude oil and natural gas prices.
Despite the focus on renewables, Reliance continues to develop its oil and gas resources. Any significant increase in global crude oil prices can have a positive impact on its overall margins in this segment.
Impact of Global and Domestic Interest Rates Interest rates play a crucial role in determining Reliance’s capital expenditure plans and debt servicing costs. The company has historically relied on substantial debt to fund its aggressive expansion, especially in digital services, retail, and the O2C business. In an environment of rising global interest rates, the cost of borrowing increases, potentially impacting its profitability.
Domestically, the Reserve Bank of India (RBI)’s monetary policy also affects consumer demand. Higher rates could reduce consumer spending on Reliance’s products and services, particularly in retail and telecom, where affordability is a major driver of demand. The company’s ability to navigate the interest rate cycle will be key in maintaining growth across its various segments.
Future Outlook Reliance Industries has demonstrated a unique ability to evolve with changing economic and technological landscapes. The shift from a predominantly oil and gas player to a diversified conglomerate with stakes in digital services, financial services, and retail has placed the company in a strong position to capitalize on India’s growth story.
While the core oil and gas business still generates significant revenue, Reliance’s pivot towards consumer-facing sectors like Reliance Jio and Reliance Retail has reduced its vulnerability to fluctuations in crude oil prices. Furthermore, its investments in clean energy and financial services underscore the company’s long-term vision of being future-ready in a rapidly changing global economy.
Conclusion Reliance Industries Limited is a powerhouse with a diversified portfolio, spanning across oil and gas, digital services, retail, and financial services. Its core operations in the oil to chemicals segment provide stability, while its aggressive expansion into Reliance Jio and Reliance Retail positions it as a leader in the consumer and digital economy. The future looks promising for Reliance as it continues to innovate and adapt to global trends, though it must navigate challenges such as rising interest rates and volatile crude oil prices.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Reliance Industries Ltd - Share Price and Detail Financial Report. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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