RELIANCE - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental & Valuation Analysis

Reliance Industries Ltd (RELIANCE) is one of India’s most diversified and dominant conglomerates, with strong presence in energy, telecom (Jio), retail, and emerging green energy. Its financials reflect stability, scale, and long-term growth potential.

🔍 Key Metrics Breakdown

Metric Value Interpretation

Market Cap ₹19.18 Lakh Cr India's largest listed company

Current Price ₹1,417 ~8.6% below 52-week high

Book Value ₹623 P/B ~2.27 → Reasonable

Stock P/E 25.6 Fair vs Industry PE (21.6)

ROE 8.51% Moderate, room for improvement

ROCE 9.43% Acceptable for capital-intensive business

Dividend Yield 0.35% Low, but consistent

Debt-to-Equity 0.44 Healthy leverage

PEG Ratio 4.38 High → growth priced in

EPS ₹60.2 Strong earnings base

PAT Qtr ₹20,530 Cr Robust profitability

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📉 Technical & Trend Analysis

RSI (40.4): Mildly oversold, potential bounce

MACD (-18.2): Bearish crossover, short-term weakness

DMA 50 & 200: Price near 200 DMA, long-term trend intact

Price Trend: Up ~69% YoY, outperforming Nifty 50

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✅ Long-Term Investment Outlook

Reliance is a strong long-term investment candidate due to

Diversified revenue streams (O2C, Jio, Retail, New Energy)

Upcoming Jio IPO with potential $120B valuation

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Green energy expansion with gigafactories and solar ecosystem

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Strong institutional backing and consistent earnings growth

Brokerages like Jefferies, Nomura, and Emkay maintain Buy ratings with targets ranging from ₹1,600 to ₹1,726

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🎯 Ideal Entry Price Zone

Based on valuation and technical support

Buy Zone: ₹1,350–₹1,400

Near 200 DMA and RSI support

Offers margin of safety before Jio IPO and energy ramp-up

🧭 Exit Strategy (If You Already Hold)

If you're holding Reliance

🔄 Short-Term Traders

Exit near ₹1,550–₹1,600, which is a resistance zone

Use trailing stop-loss below ₹1,375

🕰️ Long-Term Investors

Hold for 5+ years to benefit from Jio, retail, and green energy growth

Reassess only if ROE drops below 7% or debt spikes above 0.6

Consider partial profit booking above ₹1,700

⏳ Suggested Holding Period

Minimum 3–5 years for compounding returns

Ideal for retirement or wealth-building portfolios

Would you like a breakdown of Reliance’s segment-wise valuation or a comparison with other Nifty heavyweights like TCS or HDFC Bank?

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Goodreturns

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The Financial Express

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The Financial Express

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