Reliance Industries
Market Cap
₹12.3t
Last Updated
2021/05/07 12:01 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Industries Limited engages in the hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, digital, and financial services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Reliance Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RELIANCE is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RELIANCE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-3.1%
RELIANCE
-2.0%
IN Oil and Gas
0.4%
IN Market
1 Year Return
23.7%
RELIANCE
27.5%
IN Oil and Gas
67.3%
IN Market
Return vs Industry: RELIANCE underperformed the Indian Oil and Gas industry which returned 27.5% over the past year.
Return vs Market: RELIANCE underperformed the Indian Market which returned 67.3% over the past year.
Shareholder returns
| RELIANCE | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -2.0% | 0.4% |
| 30 Day | -3.6% | -0.8% | 1.6% |
| 90 Day | 0.4% | 1.1% | 4.3% |
| 1 Year | 25.3%23.7% | 30.9%27.5% | 69.9%67.3% |
| 3 Year | 100.2%95.3% | 37.3%23.3% | 27.9%21.5% |
| 5 Year | 307.9%295.0% | 127.7%89.0% | 87.7%73.4% |
Long-Term Price Volatility Vs. Market
How volatile is Reliance Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Capital Allocation Trends At Reliance Industries (NSE:RELIANCE) Aren't Ideal1 month ago | Simply Wall St
Reliance Industries Limited's (NSE:RELIANCE) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?1 month ago | Simply Wall St
Is Reliance Industries Limited (NSE:RELIANCE) A Smart Choice For Dividend Investors?Valuation
Is Reliance Industries undervalued compared to its fair value and its price relative to the market?
25.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RELIANCE (₹1931.75) is trading above our estimate of fair value (₹389.69)
Significantly Below Fair Value: RELIANCE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RELIANCE is poor value based on its PE Ratio (25.3x) compared to the IN Oil and Gas industry average (20.8x).
PE vs Market: RELIANCE is poor value based on its PE Ratio (25.3x) compared to the Indian market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: RELIANCE is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: RELIANCE is overvalued based on its PB Ratio (1.8x) compared to the IN Oil and Gas industry average (1x).
Future Growth
How is Reliance Industries forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
18.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RELIANCE's forecast earnings growth (18% per year) is above the savings rate (6.8%).
Earnings vs Market: RELIANCE's earnings (18% per year) are forecast to grow slower than the Indian market (23.2% per year).
High Growth Earnings: RELIANCE's earnings are forecast to grow, but not significantly.
Revenue vs Market: RELIANCE's revenue (16.9% per year) is forecast to grow faster than the Indian market (13.4% per year).
High Growth Revenue: RELIANCE's revenue (16.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RELIANCE's Return on Equity is forecast to be low in 3 years time (9.2%).
Past Performance
How has Reliance Industries performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RELIANCE has high quality earnings.
Growing Profit Margin: RELIANCE's current net profit margins (10.5%) are higher than last year (7.3%).
Past Earnings Growth Analysis
Earnings Trend: RELIANCE's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: RELIANCE's earnings growth over the past year (12.2%) exceeds its 5-year average (11.2% per year).
Earnings vs Industry: RELIANCE earnings growth over the past year (12.2%) exceeded the Oil and Gas industry -17.6%.
Return on Equity
High ROE: RELIANCE's Return on Equity (6.7%) is considered low.
Financial Health
How is Reliance Industries's financial position?
Financial Position Analysis
Short Term Liabilities: RELIANCE's short term assets (₹3,730.1B) exceed its short term liabilities (₹2,775.7B).
Long Term Liabilities: RELIANCE's short term assets (₹3,730.1B) exceed its long term liabilities (₹2,442.1B).
Debt to Equity History and Analysis
Debt Level: RELIANCE's debt to equity ratio (26.9%) is considered satisfactory.
Reducing Debt: RELIANCE's debt to equity ratio has reduced from 76.8% to 26.9% over the past 5 years.
Debt Coverage: RELIANCE's debt is not well covered by operating cash flow (12.2%).
Interest Coverage: RELIANCE's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Dividend
What is Reliance Industries's current dividend yield, its reliability and sustainability?
0.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RELIANCE's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).
High Dividend: RELIANCE's dividend (0.36%) is low compared to the top 25% of dividend payers in the Indian market (1.75%).
Stability and Growth of Payments
Stable Dividend: RELIANCE's dividends per share have been stable in the past 10 years.
Growing Dividend: RELIANCE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (9.2%), RELIANCE's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RELIANCE's dividends in 3 years are forecast to be thoroughly covered by earnings (9.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
13.1yrs
Average management tenure
CEO
Mukesh Ambani (63 yo)
18.83yrs
Tenure
₹150,000,000
Compensation
Mr. Mukesh Dhirubhai Ambani is Chairman and Managing Director of Reliance Industries Ltd. since July 31, 2002 and has been its Director since April 01, 1977. Mr. Ambani serves as an Executive of Reliance E...
CEO Compensation Analysis
Compensation vs Market: Mukesh's total compensation ($USD2.04M) is above average for companies of similar size in the Indian market ($USD1.01M).
Compensation vs Earnings: Mukesh's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RELIANCE's management team is seasoned and experienced (13.1 years average tenure).
Board Members
Experienced Board: RELIANCE's board of directors are seasoned and experienced ( 12.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RELIANCE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.
Top Shareholders
Company Information
Reliance Industries Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reliance Industries Limited
- Ticker: RELIANCE
- Exchange: NSEI
- Founded: 1973
- Industry: Oil and Gas Refining and Marketing
- Sector: Energy
- Market Cap: ₹12.260t
- Shares outstanding: 6.35b
- Website: https://www.ril.com
Number of Employees
Location
- Reliance Industries Limited
- Maker Chambers - IV
- 3rd Floor
- Mumbai
- Maharashtra
- 400021
- India
Listings
Biography
Reliance Industries Limited engages in the hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, digital, and financial services worldwide. The company produces ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 12:01 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.