RELIANCE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

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📊 Fundamental Analysis Report

• Stock Code: RELIANCE
• Market Cap: ₹20,11,669 Cr
• Current Price: ₹1,486
• 52W High/Low: ₹1,551 / ₹1,115
• EPS: ₹34.7
• Stock P/E: 51.4 vs Industry P/E: 20.7 ❗
• PEG Ratio: -13.9 ❗ (Negative PEG indicates unreliable growth)
• Book Value: ₹413 | P/B Ratio: ~3.6 ✅
• ROE: 6.61% | ROCE: 7.57% 🔻
• Debt to Equity: 0.37 🟡 (Moderate Leverage)
• Dividend Yield: 0.37% 🚫
• Quarterly PAT: ₹9,129 Cr (↓9%)
• RSI: 68.1 | MACD: 28.3 📈

✅ Positive

• Strong brand, diversified business model across energy, retail, telecom, and digital services.
• Consistent profitability with ₹9,129 Cr PAT and YoY growth of 18.4%.
• Price trading above DMA 50 and 200 supports bullish technical outlook.
• DII holding increased by 0.53%, reflecting domestic institutional confidence.

⚠️ Limitation

• High P/E ratio suggests premium valuation compared to industry average.
• Negative PEG ratio and modest ROE/ROCE indicate valuation concerns and capital efficiency issues.
• Dividend yield is low, offering limited passive income.
• RSI nearing overbought zone, caution for short-term entry.

📉 Company Negative News

• Sequential PAT declined from ₹10,036 Cr to ₹9,129 Cr.
• FII holding dropped by 0.56%, signaling cautious foreign sentiment.

📈 Company Positive News

• Strong quarterly earnings and diversified revenue streams continue to drive growth.
• Stock has delivered 85.2% return over the past year, reflecting strong investor sentiment.

🏦 Industry

• RELIANCE operates across multiple sectors including energy, telecom, retail, and digital services.
• Industry P/E of 20.7 is significantly lower, suggesting RELIANCE trades at a premium.
• Sector benefits from digital transformation, consumer demand, and infrastructure expansion.

🧭 Conclusion

• Entry Zone: ₹1,440–₹1,470 (near DMA 50 and RSI neutral)
• Long-Term View: Strong fundamentals and diversified business model support long-term holding. Accumulate on dips while monitoring valuation and earnings consistency.