RELIANCE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 4.5

📊 Financial Foundation & Earnings Insight

Quarterly Performance

PAT surged from ₹19,407 Cr to ₹20,530 Cr — consistent profitability, affirming scale and stability.

EPS: ₹60.2 — impressive, reinforcing strong earnings per share capacity.

Qtr Profit Var: +35.6% — robust YoY growth, signals earnings momentum.

Return Metrics

ROE: 8.51%, ROCE: 9.43% — moderate efficiency, reasonable for a diversified conglomerate.

Debt Profile

Debt-to-Equity: 0.44 — conservatively capitalized, manageable leverage considering asset-heavy operations.

Dividend Yield

0.35% — modest income stream, focus remains on reinvestment and scale.

💸 Valuation Dashboard

Indicator Value Commentary

P/E Ratio 25.6 Slightly above industry PE (21.6) — premium pricing

P/B Ratio ~2.27 Fair value relative to book — solid base

PEG Ratio 4.38 Elevated — earnings growth not catching up with valuation yet

RSI 40.4 Mildly oversold — ideal for value buyers

MACD –18.2 Bearish momentum — price pressure possible

DMA Trends Price ₹1,417 vs DMA50 ₹1,441 / DMA200 ₹1,374 Near support; sideways price action

52W Index Position: 69.3% — comfortably off lows, poised for uptrend with catalysts.

Volume: Stable and above weekly average — liquidity and interest remain strong.

FII/DII Sentiment

FII: +0.14%, DII: +0.36% — indicates increasing institutional confidence.

🏭 Business Model & Strategic Edge

Conglomerate Powerhouse

Diversified across energy, retail, digital services, and new-age manufacturing.

Massive infrastructure and capital investments — unmatched domestic scale.

Moat Components

Vertical integration in oil-to-chemicals and telecom.

Strong brand equity, digitization leadership (Jio), and global partnerships.

Real asset base with monetizable verticals.

Risks

Valuation stretch (high PEG) and capital-intensive segments.

Regulatory headwinds or volatility in energy prices could create friction.

🎯 Investment Strategy

Suggested Entry Zone: ₹1,375–₹1,400 — near DMA support and RSI comfort zone.

Long-Term Outlook

High-quality compounder with diversification safety and cash flow depth.

Attractive for large-cap-focused portfolios, especially with digital scale and retail expansion.

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