Current Rating and Its Significance
The Buy rating assigned to Reliance Industries Ltd indicates a positive outlook on the stock’s potential to deliver returns above the market average. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Investors should understand that this rating suggests the stock is favourably positioned for growth and value creation, making it a compelling option for those seeking exposure in the oil sector.
Here’s How Reliance Industries Ltd Looks Today
As of 28 December 2025, Reliance Industries Ltd maintains a strong market capitalisation as a large-cap stock within the oil sector. The company’s Mojo Score currently stands at 70.0, reflecting a solid Buy grade, up from a previous Hold rating with a score of 65. This improvement underscores enhanced confidence in the company’s prospects based on recent data.
Quality Assessment
Reliance Industries Ltd’s quality grade is rated as good. This is supported by the company’s robust ability to service its debt, with a low Debt to EBITDA ratio of 1.04 times, signalling prudent financial management and manageable leverage. Additionally, the company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 15.36% and operating profit growing at 16.84%. These figures indicate a resilient business model capable of sustaining profitability and expansion.
Valuation Perspective
The valuation grade for Reliance Industries Ltd is considered fair. The stock trades at an Enterprise Value to Capital Employed (EV/CE) ratio of 2.2, which is below the average historical valuations of its peers, suggesting the stock is attractively priced relative to its capital base. The company’s Return on Capital Employed (ROCE) stands at 11.8%, reflecting efficient use of capital to generate earnings. Furthermore, the PEG ratio of 1.1 indicates that the stock’s price is reasonably aligned with its earnings growth, offering a balanced risk-reward profile for investors.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade is currently flat, indicating stable but not accelerating financial momentum. Despite this, the company’s recent performance metrics are encouraging. Over the past year, Reliance Industries Ltd has delivered a total return of 28.14%, significantly outperforming the broader BSE500 market return of 5.76%. Profit growth has been robust as well, with a 22.4% increase in profits over the same period. This combination of strong returns and profit growth supports the Buy rating by signalling consistent value creation for shareholders.
Technical Outlook
The technical grade is bullish, reflecting positive momentum in the stock’s price action. Short-term price movements show resilience, with a 3-month return of +13.16% and a 6-month return of +4.27%. The stock’s day change as of 28 December 2025 is +0.07%, indicating steady investor interest. High institutional holdings at 39.08% further reinforce confidence, as these investors typically conduct thorough fundamental analysis before committing capital.
Market Position and Peer Comparison
Reliance Industries Ltd ranks among the top 1% of companies rated by MarketsMOJO across a universe of over 4,000 stocks, highlighting its exceptional standing. The company’s valuation discount relative to peers, combined with strong operational metrics and market-beating returns, makes it a compelling choice for investors seeking exposure to the oil sector with a large-cap profile.
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What This Rating Means for Investors
For investors, the Buy rating on Reliance Industries Ltd suggests that the stock is expected to outperform the market over the medium to long term. The company’s strong fundamentals, reasonable valuation, stable financial trends, and positive technical signals combine to create a favourable investment case. While no investment is without risk, Reliance’s low leverage, consistent profit growth, and institutional backing provide a cushion against volatility.
Investors should consider this rating as a signal to evaluate Reliance Industries Ltd as a core holding within a diversified portfolio, especially for those seeking exposure to the oil sector’s growth potential. The current market environment, combined with the company’s operational strengths, supports a constructive outlook.
Summary
In summary, Reliance Industries Ltd’s Buy rating by MarketsMOJO, last updated on 03 Nov 2025, is underpinned by a good quality grade, fair valuation, flat but stable financial trends, and bullish technical indicators. As of 28 December 2025, the stock’s strong returns, manageable debt, and institutional interest make it a compelling option for investors aiming to capitalise on growth opportunities in the oil sector.
Investors are encouraged to monitor ongoing developments and company disclosures to stay informed about any changes that may impact this outlook.
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