Reliance Industries Limited

NSEI:RELIANCE Stock Report

Market Cap: ₹15.3t

Reliance Industries Valuation

Is RELIANCE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RELIANCE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RELIANCE (₹1205.3) is trading above our estimate of fair value (₹946.08)

Significantly Below Fair Value: RELIANCE is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RELIANCE?

Key metric: As RELIANCE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RELIANCE. This is calculated by dividing RELIANCE's market cap by their current earnings.
What is RELIANCE's PE Ratio?
PE Ratio22.6x
Earnings₹679.17b
Market Cap₹15.32t

Price to Earnings Ratio vs Peers

How does RELIANCE's PE Ratio compare to its peers?

The above table shows the PE ratio for RELIANCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17x
IOC Indian Oil
10.8x18.3%₹1.9t
BPCL Bharat Petroleum
9.6x4.2%₹1.3t
HINDPETRO Hindustan Petroleum
20.2x30.4%₹850.1b
500109 Mangalore Refinery and Petrochemicals
27.5x53.1%₹249.2b
RELIANCE Reliance Industries
22.6x13.8%₹15.3t

Price-To-Earnings vs Peers: RELIANCE is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does RELIANCE's PE Ratio compare vs other companies in the IN Oil and Gas Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
533704 Essar Shipping
1.6xn/aUS$93.95m
No more companies available in this PE range
RELIANCE 22.6xIndustry Avg. 20.8xNo. of Companies3PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RELIANCE is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the Indian Oil and Gas industry average (20.8x).

Price to Earnings Ratio vs Fair Ratio

What is RELIANCE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RELIANCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: RELIANCE is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RELIANCE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,205.30
₹1,602.32
+32.9%
9.1%₹1,950.00₹1,300.00n/a36
Dec ’25₹1,292.20
₹1,610.03
+24.6%
8.9%₹1,950.00₹1,300.00n/a36
Nov ’25₹1,338.65
₹1,611.71
+20.4%
8.8%₹1,950.00₹1,300.00n/a36
Oct ’25₹1,464.83
₹1,656.82
+13.1%
8.8%₹1,950.00₹1,325.00n/a36
Sep ’25₹1,509.63
₹1,655.92
+9.7%
8.9%₹1,950.00₹1,300.00n/a36
Aug ’25₹1,515.30
₹1,654.31
+9.2%
9.0%₹1,950.00₹1,300.00n/a36
Jul ’25₹1,560.15
₹1,610.63
+3.2%
8.4%₹1,805.00₹1,300.00n/a34
Jun ’25₹1,430.40
₹1,581.59
+10.6%
8.8%₹1,756.00₹1,119.00n/a35
May ’25₹1,467.00
₹1,571.34
+7.1%
9.2%₹1,750.00₹1,119.00n/a35
Apr ’25₹1,484.78
₹1,483.69
-0.07%
9.4%₹1,710.00₹1,100.00n/a34
Mar ’25₹1,492.13
₹1,468.91
-1.6%
8.9%₹1,649.50₹1,100.00n/a34
Feb ’25₹1,426.65
₹1,467.37
+2.9%
8.7%₹1,649.50₹1,100.00n/a35
Jan ’25₹1,295.13
₹1,387.09
+7.1%
9.4%₹1,665.00₹1,050.00n/a34
Dec ’24₹1,197.15
₹1,385.03
+15.7%
9.4%₹1,665.00₹1,050.00₹1,292.2034
Nov ’24₹1,148.70
₹1,387.66
+20.8%
9.2%₹1,665.00₹1,050.00₹1,338.6535
Oct ’24₹1,172.50
₹1,398.24
+19.3%
9.1%₹1,635.00₹1,050.00₹1,464.8335
Sep ’24₹1,206.33
₹1,398.06
+15.9%
9.1%₹1,635.00₹1,050.00₹1,509.6335
Aug ’24₹1,256.60
₹1,396.19
+11.1%
9.3%₹1,635.00₹1,050.00₹1,515.3034
Jul ’24₹1,275.13
₹1,395.03
+9.4%
8.9%₹1,635.00₹1,050.00₹1,560.1531
Jun ’24₹1,231.63
₹1,404.47
+14.0%
9.5%₹1,684.50₹1,050.00₹1,430.4032
May ’24₹1,210.25
₹1,411.78
+16.7%
9.6%₹1,684.50₹1,025.00₹1,467.0034
Apr ’24₹1,165.53
₹1,428.32
+22.5%
9.5%₹1,684.50₹1,025.00₹1,484.7833
Mar ’24₹1,171.95
₹1,433.44
+22.3%
9.6%₹1,684.50₹1,000.00₹1,492.1334
Feb ’24₹1,169.95
₹1,432.14
+22.4%
10.0%₹1,684.50₹1,000.00₹1,426.6532
Jan ’24₹1,273.60
₹1,435.89
+12.7%
10.2%₹1,684.50₹1,000.00₹1,295.1331
Dec ’23₹1,361.65
₹1,428.23
+4.9%
10.4%₹1,684.50₹1,000.00₹1,197.1531

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 00:11
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Reliance Industries Limited is covered by 77 analysts. 35 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Vivekanand SubbaramanAmbit Capital
Nitin BhasinAmbit Capital
Vishwas KatelaAnand Rathi Shares and Stock Brokers Limited