Reliance Industries Downgraded to 'Sell' by MarketsMOJO Due to Flat Results and Underperformance

Reliance Industries, a largecap company in the oil exploration and refineries industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 9, 2024. This downgrade is based on the company's flat results in the June 2024 quarter, with a decrease of 13.0% in PAT(Q) at Rs 15,138.00 crore and the lowest PBT LESS OI(Q) at Rs 19,251.00 crore.
In addition, Reliance Industries has underperformed the market in the last year, with a return of only 19.69% compared to the market's return of 37.10%. However, the company has shown healthy long-term growth with an annual increase of 9.17% in net sales.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has worsened since October 9, 2024, with a return of -1.64%.

Reliance Industries also has a fair valuation with a ROCE of 9.9 and a 2 Enterprise value to Capital Employed. It is currently trading at a discount compared to its historical valuations. However, while the stock has generated a return of 19.69% in the past year, its profits have only increased by 6.7%, resulting in a PEG ratio of 1.6.

The company also has a high institutional holding of 39.27%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals. With a market cap of Rs 18,91,796 crore, Reliance Industries is the largest company in the sector, constituting 65.78% of the entire industry. Its annual sales of Rs 925,289.00 crore make up 26.99% of the industry.

Overall, while Reliance Industries has shown healthy long-term growth, its recent performance and technical trend have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this stock.