Reliance Industries Ltd.
NSE: RELIANCEReliance Industries Ltd.: A 30-second snapshot
Reliance Industries (₹1,297.70) is a large-cap diversified conglomerate spanning O2C, retail, and telecom, currently trading 19.12% below its 52-week high and below both its 50-DMA (₹1,357.83) and 200-DMA (₹1,420.95). Over 5 years, revenue compounded at 12.5% annually while earnings compounded at -12.6%, with ROE at 9.14% and debt-to-equity at 36.65 on a rising trajectory. PE of 21.62 is the highest in its 6-stock energy peer group, where the company also ranks last on quality score (32) and ROE.
P/E
21.6
Forward P/E
18.0
ROE
+9.1%
Debt / Equity
36.65
Profit Margin
+7.6%
Div. Yield
+0.5%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
44/100
News
8 headlines · 5 positive · 0 negative
Supreme Court Grants Relief To RIL; Sets Aside SEBI's Fraud Finding & ₹447 Crore Disgorgement In 2007 RPL ... - Verdictum
Verdictum
Supreme Court sets aside 'fraud' findings, disgorgement of ₹447 crore in 2007 RPL Futures Trading case - The Hindu
The Hindu
Supreme Court grants relief to Reliance; sets aside fraud finding, ₹447 crore disgorgement in RPL trades case - Bar and Bench
Bar and Bench
Supreme Court Grants Relief To Reliance Industries In 2007 RPL Futures Trading Case, Sets Aside SEBI's... - Live Law
Live Law
Reliance Industries can benefit from these two factors besides valuation comfort, JPMorgan says - CNBC TV18
CNBC TV18
Recent context
- ·The Supreme Court set aside SEBI fraud findings and a ₹447 crore disgorgement order related to the 2007 RPL Futures Trading case (May 28–29, 2026), resolving a multi-year legacy legal matter that had been an active regulatory risk.
- ·JPMorgan cited valuation comfort and two additional positive factors for RELIANCE in early June 2026 (CNBC TV18, June 2), reflecting a named broker view separate from the broader analyst consensus distribution.
- ·Price action over the past 3 months shows a 3.07% decline with the stock holding above the ₹1,284.06 support level; resistance clusters are identified at ₹1,364.79, ₹1,366.68, and ₹1,423.92.
Strengths
- +Forward PE of 17.95 represents a compression from the trailing PE of 21.62, implying consensus earnings expectations for improvement in the near term relative to the current price level.
- +Revenue has compounded at 12.5% annually over 5 years, reflecting the scale and diversity of revenue streams across O2C, Jio telecom, and retail segments.
- +FCF was positive in 3 of the tracked years, indicating the business has at points generated cash above capital expenditure requirements despite the scale of ongoing investment.
- +Mean analyst rating of 1.3125 across 32 analysts (1–5 scale, lower = more constructive), with the Supreme Court setting aside a 2007 legacy SEBI fraud finding, removing a multi-year legal overhang.
Weaknesses
- −5-year earnings CAGR of -12.6% against revenue CAGR of +12.5% indicates that cost structures — interest expense on elevated debt and depreciation from large capex cycles — have consistently absorbed revenue gains before reaching net profit.
- −Debt-to-equity of 36.65 on a confirmed rising trend, with FCF positive in only 3 of tracked years, reflects sustained capital-intensive expansion that has not yet translated into balance-sheet deleveraging.
- −ROE of 9.14% with zero years above 15% in tracked history and a consistency score of 26 places RELIANCE at the bottom of its peer group on capital efficiency, behind BPCL (28.47%), COALINDIA (28.12%), and IOC (20.97%).
- −Highest PE (21.62) in the energy peer group without corresponding quality or profitability leadership: quality score of 32 ranks last of 6, and the 19.12% drawdown from 52-week high alongside a 7.41% 12-month price decline reflects underperformance relative to the valuation premium.
Open questions
- ?Does the gap between 12.5% revenue CAGR and -12.6% earnings CAGR reflect a transitional capex cycle that will normalise, or a structural shift in unit economics driven by segment mix (Jio, retail, O2C)?
- ?At a D/E of 36.65 on a rising trajectory, what is the interest coverage ratio across cycles, and how sensitive is net profit to changes in the cost of debt given the scale of borrowings?
- ?How does the forward PE of 17.95 compare to the company's own historical forward PE range, and what earnings growth assumptions are embedded in that multiple?
- ?Given RELIANCE ranks last in quality score and ROE within its energy peer group while carrying the highest PE, what segment-level development — O2C margin recovery, Jio ARPU expansion, or retail scale — would close the quality gap with peers?
Peer comparison: Energy
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RELIANCE | Reliance Industries Ltd.You're viewing | 21.6 | +9.1% | 32 |
| Industry avg | across 5 peers | 8.3 | +19.8% | 51 |
| COALINDIA | Coal India Ltd. | 9.4 | +28.1% | 77 |
| BPCL | Bharat Petroleum Corporation Ltd. | 4.9 | +28.5% | 55 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 8.0 | +12.7% | 53 |
| IOC | Indian Oil Corporation Ltd. | 4.5 | +21.0% | 49 |
| GAIL | GAIL (India) Ltd. | 14.5 | +8.7% | 19 |
Technical state
Current price
₹1,297.70
SMA 50
₹1,357.83
SMA 200
₹1,420.95
RSI (14)
34.7 (neutral)
From 52w high
-19.1%
1Y return
-7.4%
3M return
-3.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings CAGR of -12.6% against revenue CAGR of +12.5%. Revenue scale-up has not translated to bottom-line growth; ROE stands at 9.14% with zero years above 15% in tracked history and a consistency score of 26, indicating that cost lines (interest, depreciation, or capital charges) have absorbed operational gains throughout the period.
- highDebt-to-equity of 36.65 with a confirmed rising debt trend. FCF was positive in only 3 of the available tracked years. Elevated leverage combined with a declining 5-year earnings trajectory raises refinancing and interest-burden exposure that is disproportionate to the peer group.
- mediumPrice of ₹1,297.70 is below both the 50-DMA (₹1,357.83) and the 200-DMA (₹1,420.95). The stock is 19.12% off its 52-week high, down 7.41% over 12 months and 3.07% over the past 3 months. RSI of 34.71 sits in the lower neutral range, approaching oversold territory. Nearest support is at ₹1,284.06.
- mediumRELIANCE ranks last (6th of 6) on both quality score (32 vs peer group leader COALINDIA at 77) and ROE (9.14% vs BPCL at 28.47% and COALINDIA at 28.12%). It carries the highest PE in the peer group at 21.62, against peers ranging from 4.52 (IOC) to 14.52 (GAIL), without corresponding quality or profitability leadership.
- lowNews sample of 8 articles is sparse for a company of this scale. Dominant news themes relate to the 2007 RPL Futures Trading case, where the Supreme Court set aside SEBI fraud findings and a ₹447 crore disgorgement order — a legacy legal development, not a current operational signal.
Cross-section contradictions
- Revenue grew at a 5-year CAGR of 12.5% while 5-year earnings CAGR is -12.6%; this divergence indicates that below-EBITDA cost lines — notably interest expense on rising debt and heavy capex-driven depreciation — are absorbing revenue gains before they reach net profit.
- Mean analyst rating of 1.3125 across 32 analysts (1–5 scale, lower = more constructive) coexists with the stock ranking last in its peer group on quality score (32 vs group high of 77), zero years of ROE above 15%, a five-year earnings decline, and a price below its 200-DMA for the observed period.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 8 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days