NSEI:RELIANCE

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Reliance Industries

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


Snowflake Analysis

Solid track record with reasonable growth potential 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

RELIANCE

-5.0%

IN Oil and Gas

-0.4%

IN Market


1 Year Return

46.7%

RELIANCE

11.5%

IN Oil and Gas

2.3%

IN Market

Return vs Industry: RELIANCE exceeded the Indian Oil and Gas industry which returned 11.5% over the past year.

Return vs Market: RELIANCE exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

RELIANCEIndustryMarket
7 Day-4.5%-5.0%-0.4%
30 Day-4.7%-5.8%3.3%
90 Day-1.8%-2.3%6.7%
1 Year48.6%46.7%15.3%11.5%4.0%2.3%
3 Year128.0%122.4%31.4%18.5%0.6%-4.1%
5 Year367.3%347.8%121.6%83.5%42.3%31.8%

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

Valuation

Is Reliance Industries undervalued compared to its fair value and its price relative to the market?

28.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RELIANCE (₹2106.95) is trading above our estimate of fair value (₹1888.01)

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 (28.3x) compared to the IN Oil and Gas industry average (12.8x).

PE vs Market: RELIANCE is poor value based on its PE Ratio (28.3x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: RELIANCE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: RELIANCE is overvalued based on its PB Ratio (2.8x) compared to the IN Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Reliance Industries forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RELIANCE's forecast earnings growth (30.3% per year) is above the savings rate (7.2%).

Earnings vs Market: RELIANCE's earnings (30.3% per year) are forecast to grow faster than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RELIANCE's revenue (18.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: RELIANCE's revenue (18.9% 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 (10.8%).


Next Steps

Past Performance

How has Reliance Industries performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RELIANCE has high quality earnings.

Growing Profit Margin: RELIANCE's current net profit margins (8.9%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: RELIANCE's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: RELIANCE's earnings growth over the past year (16.6%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: RELIANCE earnings growth over the past year (16.6%) exceeded the Oil and Gas industry -22.6%.


Return on Equity

High ROE: RELIANCE's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Reliance Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RELIANCE's short term assets (₹2,582.6B) do not cover its short term liabilities (₹4,129.2B).

Long Term Liabilities: RELIANCE's short term assets (₹2,582.6B) do not cover its long term liabilities (₹2,916.5B).


Debt to Equity History and Analysis

Debt Level: RELIANCE's debt to equity ratio (72.9%) is considered high.

Reducing Debt: RELIANCE's debt to equity ratio has increased from 72.5% to 72.9% over the past 5 years.

Debt Coverage: RELIANCE's debt is well covered by operating cash flow (29.2%).

Interest Coverage: RELIANCE's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Reliance Industries's current dividend yield, its reliability and sustainability?

0.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RELIANCE's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: RELIANCE's dividend (0.31%) is low compared to the top 25% of dividend payers in the Indian market (2.3%).


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 (8.7%), 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 (6.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.5yrs

Average management tenure


CEO

Mukesh Ambani (63 yo)

18.25yrs

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 ($USD2.04M) is above average for companies of similar size in the Indian market ($USD1.37M).

Compensation vs Earnings: Mukesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mukesh Ambani
Chairman & MD18.25yrs₹150.00m0.76%
₹ 101.9b
Srikanth Venkatachari
Joint Chief Financial Officerno data₹140.00m0.0051%
₹ 689.3m
Alok Agarwal
Chief Financial Officer15.75yrs₹120.00m0.0095%
₹ 1.3b
K. Sethuraman
Group Company Secretary & Chief Compliance Officer9.25yrs₹30.00m0%
₹ 0
Nikhil Meswani
Executive Director34.33yrs₹239.90m0.029%
₹ 4.0b
Hital Meswani
Executive Director25.17yrs₹240.00m0.027%
₹ 3.7b
Panda Madhu Sudana Prasad
Executive Director11.17yrs₹111.50m0.00063%
₹ 85.0m
Pawan Kapil
Executive Director10.42yrs₹40.40m0.00089%
₹ 120.1m
Savithri Parekh
Joint Company Secretary & Compliance Officer1.58yrs₹20.00mno data
Sanjiv Singh
Group President0.17yrno datano data
Jyotindra Thacker
President of Technologyno datano data0.0018%
₹ 236.1m
Hemen Modi
Vice President of Investor Relations20.33yrsno data0.000050%
₹ 6.7m

12.5yrs

Average Tenure

62yo

Average Age

Experienced Management: RELIANCE's management team is seasoned and experienced (12.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mukesh Ambani
Chairman & MD18.25yrs₹150.00m0.76%
₹ 101.9b
Nikhil Meswani
Executive Director34.33yrs₹239.90m0.029%
₹ 4.0b
Hital Meswani
Executive Director25.17yrs₹240.00m0.027%
₹ 3.7b
Panda Madhu Sudana Prasad
Executive Director11.17yrs₹111.50m0.00063%
₹ 85.0m
Pawan Kapil
Executive Director10.42yrs₹40.40m0.00089%
₹ 120.1m
Dipak Jain
Independent Director15.17yrs₹12.40mno data
Yogendra Trivedi
Independent Director28.5yrs₹14.80m0.0010%
₹ 136.2m
Adil Zainulbhai
Independent Director6.83yrs₹14.40mno data
Raghunath Mashelkar
Independent Director13.33yrs₹14.60mno data
Arundhati Bhattacharya
Independent Director2yrs₹13.20mno data
Nita Ambani
Non-Executive Non-Independent Director6.33yrs₹12.20m0.13%
₹ 17.1b
Raminder Gujral
Independent Director5.33yrs₹14.00m0.00019%
₹ 25.6m

12.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: RELIANCE's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RELIANCE insiders have sold more shares than they have bought 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: ₹13.490t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RELINBDL (Bourse de Luxembourg)SPON GDR EACH REP 2 ORD SHS 144ALUUSDFeb 1993
RLIDB (Deutsche Boerse AG)SPON GDR EACH REP 2 ORD SHS 144ADEEURFeb 1993
RIGDLSE (London Stock Exchange)SPON GDR EACH REP 2 ORD SHS 144AGBUSDFeb 1993
RIGDLBATS-CHIXE (BATS 'Chi-X Europe')SPON GDR EACH REP 2 ORD SHS 144AGBUSDFeb 1993
RLIWBAG (Wiener Boerse AG)SPON GDR EACH REP 2 ORD SHS 144AATEURFeb 1993
500325BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1995
RELIANCENSEI (National Stock Exchange of India)YesEquity SharesININRNov 1995
890147BSE (Mumbai Stock Exchange)INR10 (PPD INR314.25 UPD INR942.75)ININRJun 2020
RELIANCEPPNSEI (National Stock Exchange of India)INR10 (PPD INR314.25 UPD INR942.75)ININRJun 2020

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 12:48
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.