The Best Exclusive Fundamental Analysis of Reliance Industries Ltd
About the Company - Reliance Industries Ltd
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
Reliance Industries Ltd Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
YoY Net Profit Growth (%)
7.96%
4.84%
26.32%
-0.09%
20.94%
10.41%
0.11%
34.75%
26.25%
9.20%
6.66%
Change in YoY Net Profit Growth (%)
0.00%
-3.11%
21.47%
-26.41%
21.03%
-10.53%
-10.31%
34.64%
-8.50%
-17.05%
-2.54%
Reliance Industries Ltd Growth
Compounded Sales Growth
10 Years:
8%
5 Years:
10%
3 Years:
25%
TTM:
7%
Compounded Profit Growth
10 Years:
13%
5 Years:
12%
3 Years:
16%
TTM:
7%
Stock Price CAGR
10 Years:
21%
5 Years:
22%
3 Years:
17%
1 Year:
19%
Return on Equity
10 Years:
10%
5 Years:
9%
3 Years:
9%
Last Year:
9%
Last Updated: July 26, 2024, 4:50 pm
Reliance Industries Ltd Balance Sheet
Last Updated: July 10, 2024, 7:56 pm
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
346,142
Other Liabilities
73,083
91,395
117,736
172,727
225,618
277,924
302,804
358,716
340,931
399,979
438,346
616,363
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
1,755,986
Fixed Assets
133,487
141,417
156,458
184,910
198,526
403,885
398,374
532,658
541,258
627,798
724,805
966,458
CWIP
49,952
91,494
166,462
228,697
324,837
187,022
179,463
109,106
125,953
172,506
293,752
152,382
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
411,474
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
1,755,986
Reliance Industries Ltd Reserves and Borrowings Chart
Reliance Industries Ltd 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
-114,301
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
27,841
Reliance Industries Ltd 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
-209.00
-309.00
-184.00
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 = 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.
Undervalued: 6.87% compared to the current price 3018
Intrinsic Value: 3,614.56
Calculation basis:
Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 19.77% compared to the current price 3018
Last 5 Year EPS CAGR: 12.07%
*Investments are subject to market risks
Strength and Weakness of Reliance Industries Ltd Stock
Strength
Weakness
The stock has a low average Working Capital Days of -49.00, 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 (260,419.67 cr), indicating strong financial stability.
The company has shown consistent growth in sales (522.67 cr) and profit (54.75 cr) over the years.
The stock has a low average ROCE of 9.00%, which may not be favorable.
Should I Buy Reliance Industries Ltd Share Now?
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:
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: 32.93%)
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: 29.7 (Industry average Stock P/E: 9.18)
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: 0.40
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:★★★★☆
► What does Reliance Industries Limited do?
Reliance Industries Limited (RIL) is a major player in the Indian economy, with a big presence in the oil and gas sector. They are one of the largest oil and gas exploration and production companies in India, and operate the world’s largest refinery at Jamnagar [ril.com]. RIL is also involved in other areas like petrochemicals, retail, and telecommunications.
► Who is the CEO of Reliance?
Reliance Industries Limited has a chairman and managing director, Mukesh D. Ambani, who effectively leads the company. CEO isn’t the usual title used, but Mukesh Ambani holds the highest leadership position.
► How many companies are under Reliance Industries?
Reliance Industries Limited (RIL) itself has a complex corporate structure with a vast network of subsidiaries and associate companies. There’s no single definitive answer to how many companies are “under” it, but here’s what we can tell:
Estimates suggest around 150 subsidiaries and associate companies are linked to RIL[^1].
Reliance provides a list of their major subsidiaries and associates on their website, though the total number isn’t explicitly stated [^2].
[^1]: [geeksforgeeks.org] [^2]: [ril.com]
► Is Reliance a MNC company?
Yes, Reliance Industries Limited (RIL) is considered a multinational corporation (MNC) due to its significant international operations and investments. RIL has diverse business interests across various countries, including but not limited to oil and gas exploration, petrochemicals, retail, and telecommunications.
► What is the main product of Reliance Industries Ltd?
Reliance Industries Limited (RIL) doesn’t have a single main product due to its vast diversification across various sectors [ril.com].
Here’s a breakdown of their key areas:
Oil and Gas: This is a historical strength for RIL, where they are a major player in exploration, production, and refining [ril.com].
Petrochemicals: They are the largest producer of petrochemicals in India and a global leader.
Retail: Reliance Retail, a subsidiary, is a major force in Indian retail with various store formats.
Telecommunications: Jio, another subsidiary, is India’s largest telecom company by market share.
While oil and gas played a foundational role, Reliance has grown into a conglomerate with significant interests across these diverse sectors.
► What is the main source of income of Reliance?
The main source of income for Reliance Industries Limited (RIL) has shifted in recent years, but it currently comes from their Oil to Chemicals (O2C) business.
Here’s a breakdown:
Oil to Chemicals (O2C): This segment contributes the most to RIL’s revenue mix, encompassing refining, petrochemicals, and related products [Economic Times – Revenue mix of RIL].
Retail: This is the second-highest revenue generator, with Reliance Retail operating various stores across India [Economic Times – Revenue mix of RIL].
Digital Services: Jio, their telecom venture, is a fast-growing segment and a significant contributor, though its revenue share is below retail [Economic Times – Revenue mix of RIL].
Oil and Gas Exploration & Production: While historically a major source of income, this segment’s contribution has declined and accounts for a smaller portion of the revenue pie [Economic Times – Revenue mix of RIL].
It’s important to note that Reliance is constantly evolving, and the relative importance of these sectors may change over time.
FAQ
What is the latest fair value of Reliance Industries Ltd?
The latest fair value of Reliance Industries Ltd is ₹3225.20.
What is the Market Cap of Reliance Industries Ltd?
The Market Cap of Reliance Industries Ltd is 20,43,462 Cr..
What is the current Stock Price of Reliance Industries Ltd as on 27 July 2024?
The current stock price of Reliance Industries Ltd as on 27 July 2024 is 3,018.
What is the High / Low of Reliance Industries Ltd stocks in FY 2024?
In FY 2024, the High / Low of Reliance Industries Ltd stocks is 3,218/2,220.
What is the Stock P/E of Reliance Industries Ltd?
The Stock P/E of Reliance Industries Ltd is 29.7.
What is the Book Value of Reliance Industries Ltd?
The Book Value of Reliance Industries Ltd is 1,173.
What is the Dividend Yield of Reliance Industries Ltd?
The Dividend Yield of Reliance Industries Ltd is 0.30 %.
What is the ROCE of Reliance Industries Ltd?
The ROCE of Reliance Industries Ltd is 9.99 %.
What is the ROE of Reliance Industries Ltd?
The ROE of Reliance Industries Ltd is 9.23 %.
What is the Face Value of Reliance Industries Ltd?
The Face Value of Reliance Industries Ltd is 10.0.
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. 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
