Reliance Industries Ltd is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s Hold rating for Reliance Industries Ltd indicates a balanced view of the stock’s prospects. It suggests that while the company maintains solid fundamentals and growth potential, certain valuation and financial trend factors advise caution for investors considering new positions. This rating serves as a signal to investors to maintain existing holdings rather than aggressively buying or selling at this stage.

How the Stock Looks Today: Quality Assessment

As of 09 February 2026, Reliance Industries Ltd continues to demonstrate strong operational quality. The company holds a good quality grade, reflecting its robust ability to service debt, efficient operations, and consistent revenue growth. Notably, the Debt to EBITDA ratio stands at a low 1.04 times, underscoring the firm’s prudent leverage and financial stability. This low leverage reduces financial risk and supports sustainable growth.

The company’s long-term growth trajectory remains healthy, with Net Sales expanding at an annual rate of 17.69% and Operating Profit growing at 17.98%. These figures highlight Reliance’s capacity to generate increasing revenues and profits over time, a key factor underpinning its quality grade.

Valuation Perspective

Reliance Industries Ltd’s valuation is currently assessed as fair. The stock trades at an Enterprise Value to Capital Employed ratio of 2.1, which is modest compared to its sector peers. This valuation level suggests that the market is pricing the company reasonably relative to the capital it employs to generate earnings.

Moreover, the company’s Price/Earnings to Growth (PEG) ratio stands at 1.2, indicating that the stock’s price is fairly aligned with its earnings growth prospects. This PEG ratio suggests that investors are paying a balanced price for the company’s growth potential, neither excessively expensive nor undervalued.

Financial Trend and Recent Performance

The financial trend for Reliance Industries Ltd is currently flat, reflecting a period of stabilisation following recent fluctuations. The latest quarterly results for December 2025 show a slight decline in profit after tax (PAT), which fell by 10.3% to ₹18,645 crore compared to the previous four-quarter average. This dip signals some short-term challenges but does not overshadow the company’s overall growth trajectory.

Despite this, the stock has delivered a 15.19% return over the past year as of 09 February 2026, outperforming many peers in the oil sector. Profits have risen by 20.3% over the same period, indicating that the company’s earnings growth remains intact despite recent quarterly softness.

Technical Outlook

From a technical standpoint, Reliance Industries Ltd is rated as mildly bullish. The stock has shown resilience with a 6.67% gain over the past six months and a positive weekly return of 4.97%. The one-day price change of +0.58% on 09 February 2026 further reflects steady investor interest. This mild bullishness suggests that the stock is maintaining upward momentum, though not at an aggressive pace.

Market Position and Institutional Confidence

Reliance Industries Ltd remains the largest company in the oil sector by market capitalisation, valued at approximately ₹19,63,358 crore. It constitutes 66.44% of the entire sector’s market cap, underscoring its dominant position. The company’s annual sales of ₹1,024,548 crore represent 29.01% of the industry, highlighting its significant market share.

Institutional investors hold a substantial 39.37% stake in the company. This high level of institutional ownership reflects confidence from sophisticated market participants who typically conduct thorough fundamental analysis before investing. Such backing often provides stability and can be a positive indicator for long-term investors.

What This Rating Means for Investors

For investors, the Hold rating on Reliance Industries Ltd suggests a cautious approach. The company’s strong quality and stable financial position provide a solid foundation, but the fair valuation and flat financial trend advise against aggressive accumulation at current levels. Investors holding the stock may consider maintaining their positions to benefit from steady earnings growth and sector leadership.

New investors might prefer to monitor the stock for clearer signs of upward momentum or improved financial trends before initiating significant exposure. The mildly bullish technical outlook indicates potential for moderate gains, but the recent quarterly profit decline warrants attention.

Summary of Key Metrics as of 09 February 2026

- Mojo Score: 62.0 (Hold grade)
- Market Cap: ₹19,63,358 crore (largecap)
- Debt to EBITDA: 1.04 times (low leverage)
- Net Sales Growth: 17.69% annualised
- Operating Profit Growth: 17.98% annualised
- PAT (Q4 Dec 2025): ₹18,645 crore, down 10.3% vs previous average
- ROCE: 11.8%
- Enterprise Value to Capital Employed: 2.1
- PEG Ratio: 1.2
- Institutional Holdings: 39.37%
- Stock Returns: 1Y +15.19%, 6M +6.67%, 1W +4.97%, 1D +0.58%

These figures collectively explain why MarketsMOJO currently rates Reliance Industries Ltd as a Hold, reflecting a balanced view of its strengths and near-term challenges.

Looking Ahead

Investors should continue to track Reliance Industries Ltd’s quarterly earnings and sector developments closely. Improvements in profit trends or valuation metrics could prompt a reassessment of the rating. Meanwhile, the company’s dominant market position and solid fundamentals provide a degree of resilience amid market fluctuations.

In summary, Reliance Industries Ltd remains a key player in the oil sector with a Hold rating that advises measured optimism. The stock’s current fundamentals and technicals suggest steady performance, making it suitable for investors seeking stability rather than aggressive growth at this juncture.

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