Reliance Industries’ fundamental analysis underscores critical financial metrics, including a total market capitalization of ₹20,01,159.35 crore, a debt-to-equity ratio of 0.58, and a return on equity (ROE) of 9.25%. These figures provide insight into the company’s financial stability and overall market valuation.
Content:
- Reliance Industries Ltd Overview
- Reliance Industries Financial Results
- Reliance Industries Limited Financial Analysis
- Reliance Industries Company Metrics
- Reliance Industries Stock Performance
- Reliance Industries Peer Comparison
- Reliance Industries Shareholding Pattern
- Reliance Industries History
- How To Invest In Reliance Industries Ltd Share?
- Reliance Industries Limited Fundamental Analysis – FAQs
Reliance Industries Ltd Overview
The company has a market cap of ₹20,01,159.35 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 0.34% below its 52-week high and 33.38% above its 52-week low.
Reliance Industries Financial Results
Reliance Industries saw sales increase from ₹694,673 crore in FY 22 to ₹899,041 crore in FY 24. Expenses rose from ₹586,092 crore to ₹736,543 crore. Operating profit fluctuated, reaching ₹162,498 crore in FY 24.
- Revenue Trend: The Revenue Trend highlights significant growth in sales over the past three fiscal years. Sales increased from ₹694,673 crore in FY 22 to ₹876,396 crore in FY 23, and further to ₹899,041 crore in FY 24. This upward trajectory reflects the company’s strong market presence, effective strategies, and growing demand for its products or services, indicating robust financial health and potential for sustained growth.
- Profitability: Operating Profit Margin (OPM) increased slightly from 16% in FY 22 to 18% in FY 24. EBITDA and other income figures would provide additional insight but are not fully detailed in the dataset.
- Earnings per Share (EPS): Specific EPS figures aren’t provided, but the increase in operating profit suggests potential stability or slight improvement in EPS.
- Return on Net Worth (RoNW): Although specific RoNW figures aren’t provided, the increase in operating profit from ₹108,581 crore in FY 22 to ₹162,498 crore in FY 24 suggests a positive impact on RoNW.
- Financial Position: The overall financial position shows growth in sales and operating profit, indicating a positive trend, though expenses have also risen, which could impact profitability if not managed effectively.
Reliance Industries Limited Financial Analysis
| FY 22 | FY 23 | FY 24 | |
| Sales | 694,673 | 876,396 | 899,041 |
| Expenses | 586,092 | 734,078 | 736,543 |
| Operating Profit | 108,581 | 142,318 | 162,498 |
| OPM % | 16% | 16% | 18% |
| Other Income | 19,600 | 12,020 | 16,179 |
| Interest | 14,584 | 19,571 | 23,118 |
| Depreciation | 29,782 | 40,303 | 50,832 |
| Profit before tax | 83,815 | 94,464 | 104,727 |
| Tax % | 19% | 22% | 25% |
| Net Profit | 67,845 | 74,088 | 79,020 |
| EPS in Rs | 89.74 | 98.59 | 102.9 |
| Dividend Payout % | 9% | 9% | 10% |
* Consolidated Figures in Rs. Crores
Reliance Industries Company Metrics
Reliance Industries’ market cap is ₹20,01,159.35 crore with a book value of ₹1,173 per share. The face value per share is ₹10. Total debt is ₹4,58,991 crore, ROE is 9.25%, and the previous annual EBITDA is ₹1,54,076 crore. The dividend yield stands at 0.34%.
Market Capitalization: Market Capitalization represents the total market value of Reliance Industries’ outstanding shares, amounting to ₹20,01,159.35 crore.
Book Value: The book value per share of Reliance Industries is ₹1,173, indicating the value of the company’s net assets divided by its shares outstanding.
Face Value: The face value of Reliance Industries’ shares is ₹10, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio: The Asset Turnover Ratio of 0.53 measures how efficiently Reliance Industries uses its assets to generate sales revenue or sales income.
Total Debt: The Total Debt of Reliance Industries stands at ₹4,58,991 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE): The ROE of 9.25% measures Reliance Industries’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Annual): The annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Reliance Industries is ₹1,54,076 crore, indicating the company’s operating performance.
Dividend Yield: The dividend yield of 0.34% shows the annual dividend payment as a percentage of Reliance Industries’ current share price, indicating the return on investment from dividends alone.
Reliance Industries Stock Performance
Reliance Industries delivered a return on investment of 15.6% in 1 year, 36.31% over 3 years, and 132.97% over 5 years, demonstrating robust growth potential and strong performance for investors across various time horizons.
| Period | Return on Investment (%) |
| 1 Year | 15.6 |
| 3 Years | 36.31 |
| 5 Years | 132.97 |
Example: If an investor had invested ₹1,000 in Reliance Industries’ stock:
- After 1 year, it would be worth ₹1,156.
- After 3 years, it would be worth ₹1,363.
- After 5 years, it would be worth ₹2,329.
Reliance Industries Peer Comparison
Reliance Industries Ltd, with a current market price of ₹2,956.40 and a market cap of ₹20,00,245.18 crore, has shown a 1-year return of 15.63%. Compared to peers like IOCL (82.90%), BPCL (88.44%), and HPCL (118.18%), Reliance’s performance, coupled with an ROE of 9.25%, demonstrates steady growth.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | 6mth return % |
| Reliance Industries | 2956.4 | 2000245.18 | 29.1 | 9.25 | 101.61 | 15.63 | 9.61 | 0.34 | 0.28 |
| I O C L | 167.17 | 236064.74 | 7.66 | 25.66 | 21.83 | 82.9 | 21.14 | 7.18 | -11.32 |
| B P C L | 332.5 | 144255.31 | 7.4 | 41.9 | 43.92 | 88.44 | 32.09 | 6.32 | 1.91 |
| H P C L | 379.85 | 80825.34 | 8.18 | 40.38 | 46.45 | 118.18 | 21.26 | 5.53 | 2.72 |
| M R P L | 203.67 | 35695.2 | 13.42 | 31.93 | 15.15 | 137.52 | 25.75 | 1.47 | -28.81 |
| C P C L | 981.6 | 14617.14 | 5.83 | 36.46 | 168.26 | 176.82 | 35.44 | 5.6 | -0.85 |
| Gandhar Oil Ref. | 207.48 | 2030.6 | 16.04 | 14.68 | 13.83 | 21.63 | 0.24 | -21.97 |
Reliance Industries Shareholding Pattern
Reliance Industries Ltd has shown stability in its shareholding patterns. As of June 2024, promoters held 50.33%, slightly up from 50.30% in December 2023. FII holdings stood at 21.75%, while DIIs increased their stake to 17.30%. The government held 0.19% and public shareholders accounted for 10.43% of the shares.
| Dec 2023 | Mar 2024 | Jun 2024 | |
| Promoters | 50.30% | 50.31% | 50.33% |
| FIIs | 22.13% | 22.06% | 21.75% |
| DIIs | 16.59% | 16.98% | 17.30% |
| Government | 0.18% | 0.19% | 0.19% |
| Public | 10.80% | 10.46% | 10.43% |
Reliance Industries History
Reliance Industries, founded by Dhirubhai Ambani in 1966, began as a small textile manufacturer before evolving into India’s largest conglomerate. Initially focused on textiles, it expanded into petrochemicals, refining, and later into telecommunications, retail, and energy.
The company was listed on the Bombay Stock Exchange in 1977, marking the beginning of its rapid growth. Under Mukesh Ambani’s leadership, Reliance transformed further, launching Jio in 2016, and revolutionizing the Indian telecom sector. Today, Reliance Industries is a global powerhouse with significant contributions to India’s economy, renowned for its innovation, diversified portfolio, and robust financial performance.
How To Invest In Reliance Industries Ltd Share?
To invest in Reliance Industries Ltd shares, start by opening a Demat account with a brokerage firm like Alice Blue. Complete the necessary KYC process and fund your account with the amount you intend to invest.
Conduct thorough research on Reliance’s fundamentals, financial performance, and market outlook before deciding to invest. Use the broker’s trading platform to place a buy order for Reliance Industries shares at your desired price.
Regularly monitor your investment and stay updated on company news and market trends. If you’re focused on long-term investing, consider setting up a systematic investment plan (SIP) to build your holdings gradually.
Reliance Industries Limited Fundamental Analysis – FAQs
Fundamental analysis of Reliance Industries examines key financial metrics: Market Cap (₹20,01,159.35 crore), PE Ratio (29.10), Debt to Equity Ratio (0.58), and Return on Equity (9.25%). These indicators provide insights into the company’s financial stability, market valuation, and robust presence across various industries, including energy, petrochemicals, retail and telecommunications.
The market capitalization of Reliance Industries Ltd is ₹20,01,159.35 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Reliance Industries Limited is India’s largest private sector conglomerate with diverse interests spanning energy, petrochemicals, refining, oil and gas exploration, telecommunications, and retail. The company plays a pivotal role in India’s economy and is recognized globally for its substantial market presence and innovation-driven growth.
Reliance Industries is a public limited company, primarily owned by the Ambani family. Mukesh Ambani, the chairman and managing director, holds a significant stake in the family’s holding entities. The company is listed on the stock exchanges and has a diverse shareholder base, including institutional investors, mutual funds and retail investors.
The main shareholders of Reliance Industries Ltd include the promoter group led by the Ambani family, along with a substantial shareholding by institutional investors (both domestic and foreign), mutual funds, and retail shareholders. The exact shareholding pattern is regularly updated and can be found in the company’s latest disclosures.
Reliance Industries operates in multiple industries, with a significant presence in energy (including oil and gas exploration, refining, and petrochemicals), telecommunications, and retail. It is a leader in the production and distribution of petrochemical products and has become a major player in the digital and retail sectors through Reliance Jio and Reliance Retail.
To invest in Reliance Industries shares, open a demat account with a brokerage firm like Alice Blue. Complete the KYC process and fund your account. Conduct thorough research on the company’s financial performance and market outlook, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Reliance Industries is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio and compare them with industry peers and historical performance for a balanced assessment.
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Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice.
